Home Depot Q1 Sales Up 5% to $41.8B, Comps Grow Only 0.6%
HD•Home Depot's Q1 revenue rose 5% to $41.8 billion with adjusted EPS of $3.43, topping estimates by $0.02, while same-store sales grew 0.6% versus a 0.9% consensus. Digital sales climbed 10% as customers deferred larger material purchases, and the company reaffirmed flat to 2% full-year comp guidance.
1. First Quarter Financial Performance
Home Depot reported Q1 revenue of $41.8 billion, a 5% year-over-year increase, with adjusted EPS of $3.43 beating the $3.41 estimate. Same-store sales rose 0.6% below the 0.9% consensus, while average ticket size increased 2.2% and transactions declined 1.3%.
2. Consumer Project Trends
High gas prices above $4.50 and elevated mortgage rates have led customers to focus on smaller DIY projects like painting, with the average U.S. home now valued above $400,000. Categories tied to larger home improvements—lumber, flooring and millwork—saw continued deferrals due to affordability concerns.
3. Guidance and Business Investments
Home Depot reaffirmed full-year same-store sales guidance of flat to 2% and highlighted digital sales growth of 10% driven by AI-powered product recommendations. The Pro segment outperformed DIY following the $18.5 billion SRS Distribution acquisition and the Mingledorff’s HVAC distributor purchase.
