Home Depot shares rise as underlying sales growth picks up

(Sharecast News) - Shares in Home Depot jumped on Tuesday after the American DIY retail giant maintained full-year targets despite missing the mark with its second-quarter earnings. The home improvement retailers reiterated guidance for sales growth of 2.8% in 2025, helped by the opening of 13 new stores, while comparable sales are expected to grow by 1.0%

As previously stated, adjusted diluted earnings per share are predicted to fall 2% from 2024 to $15.24.

Sales over the three months to 30 June increased 4.9% on last year to $45.3bn, while analysts were expecting a figure closer to $45.4bn. Net profits were flat at $4.6bn, with adjusted diluted EPS more or less unchanged at $4.68, some 4 cents lower than estimates.

However, comparable sales growth came in at 1.0%, as a meagre 0.3% and 0.5% improvement in May and June, respectively was followed by growth of 3.3% in July.

"The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects," said Ted Decker, chair, president and chief executive.

Notably, regarding tariffs, while the Atlanta-based retailer had earlier said it wouldn't pass rising costs on to customers, chief financial officer Richard McPhail said in an post-earnings interview that there would be "modest price movements for some categories".

Shares were up 4.4% at $411.83 by 1006 ET.