ATLANTA, Nov. 18, 2025 /CNW/ -- The Home Depot$(R)$ , the world's largest home improvement retailer, today reported sales of $41.4 billion for the third quarter of fiscal 2025, an increase of $1.1 billion, or 2.8% from the third quarter of fiscal 2024. Total sales include approximately $900 million from the recent acquisition of GMS Inc. (GMS), which represents approximately eight weeks of sales in the quarter. Comparable sales for the third quarter of fiscal 2025 increased 0.2%, and comparable sales in the U.S. increased 0.1%.
Net earnings for the third quarter of fiscal 2025 were $3.6 billion, or $3.62 per diluted share, compared with net earnings of $3.6 billion, or $3.67 per diluted share, in the same period of fiscal 2024.
Adjusted(1) diluted earnings per share for the third quarter of fiscal 2025 were $3.74, compared with adjusted diluted earnings per share of $3.78 in the same period of fiscal 2024.
"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories. Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand," said Ted Decker, chair, president and CEO. "Our teams are continuing to execute at a high level and we believe we are growing our market share. I would like to thank our associates for their continued hard work and dedication."
Fiscal 2025 Guidance
The company updated its fiscal 2025 guidance, a 52-week year compared to fiscal 2024, a 53-week year, to reflect its third quarter performance, continued pressure in the fourth quarter from the lack of storm activity, ongoing consumer uncertainty and housing pressure, and the inclusion of GMS.
-- Total sales growth of approximately 3.0%
-- GMS expected to contribute approximately $2.0 billion in
incremental sales
-- Comparable sales growth to be slightly positive for the comparable
52-week period
-- Approximately 12 new stores
-- Gross margin of approximately 33.2%
-- Operating margin of approximately 12.6%
-- Adjusted(1) operating margin of approximately 13.0%
-- Tax rate of approximately 24.5%
-- Net interest expense of approximately $2.3 billion
-- Diluted earnings-per-share to decline approximately 6.0% from $14.91 in
fiscal 2024
-- Adjusted(1) diluted earnings-per-share to decline approximately 5.0% from
$15.24 in fiscal 2024
-- Capital expenditures of approximately 2.5% of total sales
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations.
At the end of the third quarter, the company operated a total of 2,356 retail stores and over 1,200 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange $(HD)$ and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
(1) The Company reports its financial results in accordance
with U.S. generally accepted accounting principles
(GAAP). As used in this earnings release, adjusted
operating income, adjusted operating margin, and adjusted
diluted earnings per share are non-GAAP financial
measures. Refer to the end of this release for an
explanation of these non-GAAP financial measures and
reconciliations to the most directly comparable GAAP
measures.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" under the federal securities laws, including as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events, and use words such as "may," "will," "could," "should," "would," "anticipate," "intend," "estimate," "project," "plan," "believe," "expect," "target," "prospects," "potential," "commit" and "forecast," or words of similar import or meaning or refer to future time periods. Forward-looking statements may relate to, among other things, the demand for our products and services, including as a result of macroeconomic conditions and changing customer preferences and expectations; net sales growth; comparable sales; the effects of competition; our brand and reputation; implementation of interconnected retail, store, supply chain, technology, innovation and other strategic initiatives, including with respect to real estate; inventory and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer and trade credit; the impact of tariffs, trade policy changes or restrictions, or international trade disputes and efforts and ability to continue to diversify our supply chain; issues related to the payment methods we accept; demand for credit offerings including trade credit; management of relationships with our associates, jobseekers, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as tariffs, trade policy changes or restrictions or international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, labor disputes, geopolitical conflicts, military conflicts, or acts of war; our ability to maintain a safe and secure store environment; our ability to address expectations regarding sustainability and human capital management matters and meet related goals; continuation or suspension of share repurchases; net earnings performance; earnings per share; future dividends; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims, and litigation, including compliance with related settlements; the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of legal and regulatory changes, including executive orders and other administrative or legislative actions, such as changes to tax laws and regulations; store openings and closures; guidance for fiscal 2025 and beyond; financial outlook; and the impact of acquired companies, including SRS and GMS, on our organization and the ability to recognize the anticipated benefits of completed or pending acquisitions.
These statements are not guarantees of future performance and are subject to future events, risks and uncertainties -- many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us -- as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Part I, Item 1A. "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 2, 2025 and also as described from time to time in reports subsequently filed with the Securities and Exchange Commission. There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements.
Non-GAAP Financial Measures
To provide additional transparency, we supplement our disclosure with certain non-GAAP financial measures. When used in conjunction with our GAAP financial measures, we believe these supplemental non-GAAP financial measures will help management and investors to better understand and analyze our performance. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Refer to the end of this release for an explanation and definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures.
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three Months Ended Nine Months Ended
in millions, except pe November 2, October 27, % November 2, October 27, %
r share data
2025 2024 Change 2025 2024 Change
Net sales $ 41,352 $ 40,217 2.8 % $ 126,485 $ 119,810 5.6 %
Cost of sales 27,537 26,792 2.8 84,086 79,536 5.7
Gross profit 13,815 13,425 2.9 42,399 40,274 5.3
Operating expenses:
Selling, general and
administrative 7,636 7,212 5.9 22,930 21,023 9.1
Depreciation and
amortization 826 795 3.9 2,428 2,220 9.4
Total operating
expenses 8,462 8,007 5.7 25,358 23,243 9.1
Operating income 5,353 5,418 (1.2) 17,041 17,031 0.1
Interest and other
(income) expense:
Interest income and
other, net (32) (30) 6.7 (81) (171) (52.6)
Interest expense 628 625 0.5 1,818 1,683 8.0
Interest and other, net 596 595 0.2 1,737 1,512 14.9
Earnings before
provision for income
taxes 4,757 4,823 (1.4) 15,304 15,519 (1.4)
Provision for income
taxes 1,156 1,175 (1.6) 3,719 3,710 0.2
Net earnings $ 3,601 $ 3,648 (1.3) % $ 11,585 $ 11,809 (1.9) %
Basic weighted average
common shares 993 991 0.2 % 992 990 0.2 %
Basic earnings per
share $ 3.63 $ 3.68 (1.4) $ 11.68 $ 11.93 (2.1)
Diluted weighted
average common shares 995 993 0.2 % 994 992 0.2 %
Diluted earnings per
share $ 3.62 $ 3.67 (1.4) $ 11.65 $ 11.90 (2.1)
Three Months Ended Nine Months Ended
Selected sales data: November 2, October 27, % Change November 2, October 27, % Change
2025 2024 2025 2024
Comparable sales (%
change) 0.2 % (1.3) % N/A 0.3 % (2.5) % N/A
Comparable customer
transactions (%
change) (1) (1.6) % (0.6) % N/A (0.8) % (1.5) % N/A
Comparable average
ticket (% change) (1) 1.8 % (0.8) % N/A 1.1 % (1.2) % N/A
Customer transactions
(in millions) (1) 393.5 399.0 (1.4) % 1,235.0 1,236.8 (0.1) %
Average ticket (1) $ 90.39 $ 88.65 2.0 $ 90.35 $ 89.38 1.1
----------
(1) Customer transactions and average ticket measures
do not include results from HD Supply or SRS (including
GMS).
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
in millions November 2, October 27, February 2,
2025 2024 2025
Assets
Current assets:
Cash and cash equivalents $ 1,684 $ 1,531 $ 1,659
Receivables, net 6,765 5,782 4,903
Merchandise inventories 26,203 23,897 23,451
Other current assets 1,463 1,739 1,670
Total current assets 36,115 32,949 31,683
Net property and equipment 27,683 26,573 26,702
Operating lease right-of-use
assets 9,041 8,521 8,592
Goodwill 22,267 19,428 19,475
Intangible assets, net 10,416 9,112 8,983
Other assets 752 681 684
Total assets $ 106,274 $ 97,264 $ 96,119
Liabilities and Stockholders'
Equity
Current liabilities:
Short-term debt $ 3,200 $ 1,344 $ 316
Accounts payable 13,237 13,506 11,938
Accrued salaries and related
expenses 2,245 2,094 2,315
Current installments of
long-term debt 6,471 3,176 4,582
Current operating lease
liabilities 1,417 1,262 1,274
Other current liabilities 7,797 7,710 8,236
Total current liabilities 34,367 29,092 28,661
Long-term debt, excluding
current installments 46,343 50,058 48,485
Long-term operating lease
liabilities 7,986 7,538 7,633
Other long-term liabilities 5,462 4,790 4,700
Total liabilities 94,158 91,478 89,479
Total stockholders' equity 12,116 5,786 6,640
Total liabilities and
stockholders' equity $ 106,274 $ 97,264 $ 96,119
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
in millions November 2, October 27,
2025 2024
Cash Flows from Operating Activities:
Net earnings $ 11,585 $ 11,809
Reconciliation of net earnings to net cash
provided
by operating activities:
Depreciation and amortization, excluding
amortization
of intangible assets 2,606 2,472
Intangible asset amortization 436 280
Stock-based compensation expense 408 328
Changes in working capital (2,694) 84
Changes in deferred income taxes 479 170
Other operating activities 158 (4)
Net cash provided by operating activities 12,978 15,139
Cash Flows from Investing Activities:
Capital expenditures (2,621) (2,384)
Payments for businesses acquired, net (5,248) (17,613)
Other investing activities 104 85
Net cash used in investing activities (7,765) (19,912)
Cash Flows from Financing Activities:
Proceeds from short-term debt, net 2,884 1,344
Proceeds from long-term debt, net of discounts 2,111 9,983
Repayments of long-term debt (3,404) (1,355)
Repurchases of common stock -- (649)
Proceeds from sales of common stock 185 231
Cash dividends (6,863) (6,694)
Other financing activities (147) (223)
Net cash (used in) provided by financing
activities (5,234) 2,637
Change in cash and cash equivalents (21) (2,136)
Effect of exchange rate changes on cash and
cash
equivalents 46 (93)
Cash and cash equivalents at beginning of
period 1,659 3,760
Cash and cash equivalents at end of period $ 1,684 $ 1,531
NON-GAAP FINANCIAL MEASURES
Adjusted operating income, adjusted operating margin (calculated as adjusted operating income divided by total net sales), and adjusted diluted earnings per share are presented as supplemental financial measures in the evaluation of our business that are not required by or presented in accordance with GAAP. The Company excludes the impact of amortization expense from acquired intangible assets from adjusted operating income and adjusted operating margin, and the impact of amortization expense from acquired intangible assets, including the related tax effects, from adjusted diluted earnings per share. We do not adjust for the revenue that is generated in part from the use of our acquired intangible assets. Amortization expense, unlike the related revenue, is not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised.
When used in conjunction with our GAAP results, we believe these non-GAAP measures provide investors with meaningful supplemental measures of our performance period to period, make it easier for investors to compare our underlying business performance to peers, and align to how management analyzes trends and evaluates performance internally. The Company provides non-GAAP financial information on this basis to facilitate comparability when we report earnings results. These non-GAAP measures should not be considered in isolation or as a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness as comparative measures.
RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED
OPERATING MARGIN
Three Months Ended Nine Months Ended
USD in millions November 2, October 27, % November 2, October 27, %
2025 2024 Change 2025 2024 Change
Operating income
(GAAP) $ 5,353 $ 5,418 (1.2) % $ 17,041 $ 17,031 0.1 %
Operating margin
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