Home Depot reports mixed earnings as it navigates Trump's tariffs

Tue, May 20, 2025, 3:04 AM 4 min read

Home Depot (HD) investors hoping for a turnaround in the housing market may have to keep on waiting.

The home improvement chain posted mixed earnings on Tuesday morning as consumers reconsider home renovation projects due to Trump administration's tariffs. Revenue jumped 9.4% year over year to $39.86 billion, compared to the $39.29 billion Wall Street expected. Net earnings declined 4.95% to $3.45, missing the $3.59 expected.

Same store sales fell 0.3%, compared the 0.20% decrease expected. That's a reversal after same store sales growth turned positive in Q4 after eight straight quarters of decline. The company said it was negatively impacted from foreign exchange rates by approximately 70 basis points.

In the release, CEO Ted Decker said the results "were in line with our expectations" as it saw customers engage around "smaller projects."

Year to date, Home Depot stock is down 2.5%. Shares of rival Lowe's (LOW) are down nearly 5% versus a 1% gain for the S&P 500 (^GSPC).

"We project it to take multiple quarters and into next year before the growth becomes more solid and flows through to earnings, as near-term macro pressures continue, particularly with uncertainty amidst new tariff policies," Telsey Advisory Group's Joe Feldman wrote in a note to clients.

Here's what Home Depot reported in its first quarter results, compared to what Wall Street expected according to Bloomberg data:

• Revenue: $39.86 billion, versus $39.29 billion

• Adjusted earnings per share: $3.45, versus $3.59

• Same-store sales growth: -0.30%, versus -0.20%

  • US same-store sales growth: +0.2%, versus -0.16%

• Transaction growth: +2.1%, versus +0.18%

• Average ticket size: +0.03%, versus -0.65%

Tariff uncertainty remains a top concern for Home Depot and Lowe's, which reports results on Wednesday.

The US temporarily dropped tariffs on Chinese imports from 145% to 30%, while so-called reciprocal tariffs have been suspended for a 10% universal duty. However, rates are still much higher than they were historically, and the changing tariff environment may be leading consumers to think twice before embarking on a major renovation.

Read more: What Trump's tariffs mean for the economy and your wallet

At a conference in early April, Home Depot CFO Richard McPhail said that Asia is an important region for sourcing but "a majority of the goods that we sell are produced in the United States." He added that "diversification will be an ongoing strategy for us."