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Home Depot Misses Q3 Profit Target, Cuts Outlook as Housing Slump Persists

Management cited a soft housing market, consumer caution, and a quiet storm season, prompting a deeper full-year EPS cut.

Overview

  • Q3 revenue rose to about $41.35 billion, topping estimates, but adjusted EPS of $3.74 missed forecasts as comparable sales inched up 0.2% overall and 0.1% in the U.S.
  • Home Depot now guides full-year adjusted EPS down roughly 5% year over year, nudges sales growth to about 3%, and expects slightly positive comparable sales.
  • Executives said weaker storm activity pressured categories such as roofing, generators, and plywood, and big-ticket projects remain deferred as housing turnover stays muted.
  • Shares fell 4% to 6% after the report, and investors are watching Lowe’s results for signs the softness extends across home improvement retail.
  • The company continues leaning into professional customers through SRS and GMS, with GMS expected to add about $2 billion in 2025 sales, as transactions slipped around 1.4% and average ticket rose near 2%.