The Home Depot Inc

Four major retailers reported Wednesday morning, all beating expectations and raising guidance, but a significant portion of those profits came from a Supreme Court decision rather than stronger consumer spending. The court struck down IEEPA tariffs on February 20th, triggering roughly $166 billion in collections from some 330,000 importers, with about $100 billion refunded as of July 31st. Walmart disclosed the largest refund, while Lowe's received $80 million, about one-ninth of Home Depot's amount. Abercrombie & Fitch reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share, but the IEEPA refund contributed $1.75 per share, making underlying EPS about $2.42. Williams-Sonoma stood out with comparable brand revenue up 6.2%, accelerating from 4.8% last quarter, and raised its full-year outlook. Kohl's beat with EPS of $1.28 against roughly $0.55 expected, and Bath & Body Works beat despite a 2.3% sales decline. The macro data shows consumers feel better about today but worse about tomorrow, with core PCE rising 0.2% month over month. Investors should normalize for tariff refunds, watch how retailers deploy the windfall, and focus on companies that didn't need the help, like Williams-Sonoma and Sam's Club.

Home Depot reported stronger-than-expected fiscal second-quarter results, with sales rising 5.7% to $47.86 billion and adjusted diluted EPS climbing to $4.92 from $4.68, above the $4.73 consensus. Comparable sales increased 1.7%, while U.S. comparable sales rose 1.3%, though comparable transactions declined 1% and comparable average ticket increased 2.8%. The company received $730 million of IEEPA tariff refunds, of which $685 million reduced second-quarter cost of goods sold, adding approximately 145 basis points to gross margin before unplanned costs and acquisition mix reduced the net benefit to about 25 basis points, bringing gross margin to 33.7%. Management reaffirmed fiscal 2026 guidance for total sales growth of 2.5% to 4.5% and comparable-sales growth between flat and 2%, while maintaining its outlook for adjusted diluted EPS growth between flat and 4% from fiscal 2025's $14.69.

Major US retailers are disclosing how they plan to use billions of dollars in tariff refunds from the federal government. Walmart received approximately $2.9 billion and will lower prices in grocery and general merchandise, while Target got $994 million and used it to boost margins, contributing $1.65 to its $4.11 earnings per share. Amazon received about $600 million and will proactively refund some customers where it can trace passed-on import charges, using the rest to cut prices. Home Depot received $730 million and used $685 million to reduce cost of goods sold, while Lowe's has received $80 million and is still weighing options. The refunds follow the Supreme Court's February ruling striking down tariffs under the 1977 International Emergency Economic Powers Act, with more than $100 billion returned to businesses as of late July.

Corporate earnings this week featured a high-stakes lineup of reports from 12 notable companies across the consumer discretionary, consumer staples, information technology, industrials, and financials sectors. All 12 reporting companies beat consensus earnings estimates, with 11 delivering year-over-year profit expansion. Revenue performance remained strong, as 11 companies topped Wall Street expectations and all 12 achieved year-over-year top-line growth, leaving one firm missing consensus estimates. Among the highlights, Home Depot posted revenue of $47.9 billion and adjusted EPS of $4.92, Lowe's beat on EPS but trimmed its full-year revenue outlook to about $92.0 billion, Walmart shares dropped 9.15% after soft guidance, Target raised its full-year adjusted EPS estimate to $9.90 to $10.90, Analog Devices issued upbeat fiscal Q4 guidance, and TJX raised its full-year EPS guidance to $5.31 to $5.36.

The Home Depot announced that its board of directors declared a quarterly cash dividend of $2.33 per share. The dividend is payable on September 17, 2026, to shareholders of record at the close of business on September 3, 2026. This marks the 158th consecutive quarter the company has paid a cash dividend.

Home Depot announced the nationwide rollout of express delivery, using its more than 2,300 stores as local fulfillment centers for both professional contractors and do-it-yourself customers. The home improvement retailer said nearly every item in its stores is available for delivery in three hours or less for a small flat fee, with no subscription or membership required, and it expects to add even faster delivery speeds in the months ahead. Executive vice president Jordan Broggi said the majority of those deliveries are actually happening in less than one hour. The move is part of a broader retail trend toward in-store fulfillment, which diminishes demand for network carriers like FedEx and UPS. Home Depot also reported second-quarter net income of $4.8 billion, up from $4.6 billion a year earlier, with revenue up 5.7% to $47.9 billion.

Home Depot used its second-quarter fiscal 2026 earnings call to emphasize stronger Pro engagement and faster digital fulfillment while acknowledging continued pressure on larger discretionary home improvement projects. The company reported adjusted earnings of $4.92 per share, beating the Zacks Consensus Estimate of $4.71, and sales of $47.86 billion, topping the $47.23 billion estimate. Management kept its full-year outlook unchanged, reaffirming comparable sales growth of flat to 2% and total sales growth of approximately 2.5% to 4.5%. The company also discussed a $730 million IEEPA tariff refund, with $685 million reducing cost of goods sold and $45 million remaining in inventory, representing about 145 basis points of gross-margin benefit. CFO Richard McPhail said rising fuel, energy and product input costs are expected to fully offset the refunds over the year, with fiscal fourth-quarter gross margin expected to be roughly flat year over year.

Home Depot delivered a strong second quarter, beating expectations with $47.9 billion in revenue, a 5.7% year-over-year increase, and adjusted earnings per share of $4.92. Comparable sales rose 1.7%, and CFO Richard McPhail said results exceeded expectations while reaffirming the full-year outlook. The company also raised its quarterly dividend to $2.33 per share, marking its 156th consecutive cash dividend. The Pro business, anchored by SRS Distribution, is expected to generate $400 million in cross-sell this year, and online comparable sales grew 11% for the fifth straight quarter. 24/7 Wall St. maintains a buy rating with a $386.28 price target, implying 14.46% upside from the August 18 close of $337.49.

Home Depot, the major American home improvement retailer, reported on the 18th that its second quarter results for May through July beat market expectations on both revenue and profit. Revenue rose 5.7 percent from a year earlier to 47.86 billion dollars, exceeding the market forecast of 47.27 billion dollars compiled by LSEG, and adjusted earnings per share came to 4.92 dollars, above the market estimate of 4.73 dollars. Although demand for large-scale renovations remained weak because mortgage rates stayed high, steady demand for smaller repairs and maintenance such as painting and yard care supported performance. Comparable sales in the United States rose 1.3 percent, and overall comparable sales increased 1.7 percent, the strongest growth since the third quarter of 2022. Executive Vice President of Merchandising Billy Bastek said tariff refunds under the International Emergency Economic Powers Act totaled 730 million dollars in the second quarter, reducing cost of sales by 685 million dollars. The company left its full-year revenue and profit outlook unchanged, assuming that the tariff refunds can offset the impact of higher-than-expected cost increases such as fuel expenses.

Home Depot shares advanced about 0.7% to $340.26 Tuesday morning after the world's largest home-improvement retailer reported stronger-than-expected second-quarter results. Revenue climbed 5.7% year over year to $47.9 billion, while adjusted earnings increased 5.1% to $4.92 per share. Comparable sales returned to growth, rising 1.7% overall and 1.3% in the United States as customers continued spending on smaller home projects. The company generated $4.8 billion in net earnings, up from $4.6 billion a year earlier, but management kept its full-year forecast unchanged, calling for comparable sales growth between flat and 2% and adjusted earnings growth between flat and 4%. The stock's valuation picture still shows some upside potential, with the latest GF Value chart showing shares trading at $340.53 versus a GF Value estimate of $383.15, suggesting the stock is about 11.12% below its intrinsic value estimate.

Pre-market futures are in the red following a somewhat down trading day Monday, with the Dow down 79 points, the S&P 500 down 39, and the Nasdaq down 405 points. The 30-year bond yield reached its highest level in 19 years at 5.32%, while the 10-year yield hit a 19-month high of 4.74%. Brent crude is back above $91 per barrel as Iran tightens ship traffic through the Strait of Hormuz and Yemeni Houthis bomb a Saudi Aramco refinery for the second time in two weeks. Housing starts for July came in below expectations at 1.239 million seasonally adjusted annualized units, the lightest print since May, versus 1.35 million expected and 1.42 million the prior month, with single-family homebuilding down 9.9% month over month and 16% year over year. Building permits rose 5% to 1.443 million units, the strongest read since February, while import prices dropped an unexpected 0.4% and exports fell 1.3%, the lowest monthly read in more than three years. Home Depot beat second-quarter estimates with earnings of $4.92 per share versus $4.71 expected and revenues of $47.86 billion, up 1.88% from estimates, and shares rose 1.5% on the news.

U.S. bond yields climbed to multi-year highs on Tuesday as new economic reports showed a cooling housing market and declining trade activity. The 30-year yield reached 5.32%, its highest in 19 years, while the 10-year yield hit 4.74%, a 19-month high, and the 2-year hovered around 4.20%. Housing starts for July fell to 1.239 million units, below the 1.35 million expected, with single-family starts down 9.9% month over month, while building permits rose 5% to 1.443 million units. Import prices unexpectedly dropped 0.4% in July, and exports fell 1.3%, the lowest monthly read in over three years. Home Depot beat second-quarter earnings estimates with $4.92 per share versus $4.71 expected, and revenue of $47.86 billion, up 1.88% from estimates.

Home Depot and Klarna both released second quarter earnings results on Tuesday, offering mixed signals on the health of the US consumer. Home Depot reported comparable sales up 1.7%, its best performance since late 2022 and above whisper numbers of 1 to 1.3%, though the residential housing market remains moribund. Klarna posted a profit versus an expected loss, with average revenue per active customer up 24%, but it cut its full-year revenue forecast due to exchange issues and noted possible volume moderation in Germany. The company also announced the planned departure of its CFO, a move that surprised some investors, and it is seeking a New York-based replacement rather than one in Stockholm. A New York Times story highlighted that buy now, pay later services are increasingly being marketed for necessities like rent and utility bills, suggesting pressure on lower-end consumers.

Baidu shares fell 7.2% in premarket trading on Tuesday after the Chinese internet company reported second-quarter revenue and adjusted earnings below analysts' estimates. The company reported revenue of RMB31.3B, or $4.62B, down 4% from a year earlier and below the $4.74B consensus estimate, while non-GAAP diluted earnings came in at $1.06 per ADS, missing the $1.46 estimate. Weakness in its online marketing business offset strong growth in AI cloud services. Home Depot shares rose 2.16% after reporting second-quarter revenue of $47.9B, up 5.8% from a year earlier, with comparable sales rising 1.7% versus the 0.9% consensus estimate. Nike shares closed at $39.09 on Monday, their lowest close since 2014, while Alibaba shares rose 2.7% to a two-week high ahead of its June-quarter earnings release.

Home Depot is set to report second-quarter fiscal 2026 results on Aug. 18 before market open, with the Zacks Consensus Estimate pegging revenues at $47.5 billion, up 4.9% year over year, and EPS at $4.71, up 0.6%. The company has an Earnings ESP of +1.35% and a Zacks Rank #3, which the model says conclusively predicts an earnings beat. Key drivers include spring demand, Pro momentum, digital sales growth of more than 10%, and contributions from the GMS acquisition and SRS expansion, while elevated mortgage rates and weak housing turnover remain headwinds. Zacks expects gross margin of 32.8%, down 60 basis points year over year, and adjusted operating income to decline 0.2%. Home Depot shares have gained 14.9% in the past three months, outperforming the industry's 12.2% growth, and trade at a forward P/E of 21.83X versus the industry average of 19.9X.

Home Depot has reshaped its leadership structure by unifying its merchandising, customer experience, and Pro-focused teams to pursue a share of the estimated $1.2 trillion home improvement market. The leadership reshuffle arrives as the share price stands at $333.35, with a 7-day return of 2.66% but a 30-day decline of 5.48%, while the 1-year total shareholder return is down 6.88% and the 5-year total shareholder return is 13.33%. The stock now trades at a single-digit discount to both analyst targets and some fair value estimates, with one widely followed narrative suggesting a fair value of about $370.18, implying the stock is modestly undervalued by roughly 9.9%. The company's targeted acquisitions, including SRS and the pending GMS deal, and expansion of its Pro customer ecosystem are expected to increase market share and organic revenue growth over time, though investors should watch for weaker big-ticket remodel demand and rising capital spending that could pressure margins and free cash flow.

The Home Depot announced an organizational realignment to accelerate innovation and capture more of its $1.2 trillion total addressable market. The company unified its private label merchants into the core merchandising organization under Billy Bastek, executive vice president of merchandising, to speed product innovation. It also combined customer experience, online, financial services, and loyalty teams into a single interconnected retail unit led by Jordan Broggi, executive vice president of interconnected retail, aiming to deliver more personalized offers. To target the roughly $700 billion Pro market, the company evolved its Office of Integration into the Office of Pro Acceleration under Richard McPhail, executive vice president and chief financial officer, to coordinate capabilities across Home Depot Pro, HD Supply, SRS, and Construction Resources. Additionally, store, supply chain, and Pro product technology teams will move under Chief Technology Officer Fran Bell to bring new technology to market faster.

Scosche Industries announced the availability of 20 of its most popular charging and mounting solutions at 500 Home Depot stores nationwide and online at HomeDepot.com. The new assortment includes charging cables, car chargers, phone mounts, and wall chargers designed to help Home Depot consumers stay connected. Scosche Co-President Kas Alves said the partnership reflects shared priorities of reliability and practicality, making Home Depot a natural retail partner. The products range from MagStack magnetic cables and PowerVolt car chargers to MagicMount phone mounts and PowerFlux home chargers.

PR Newswire released its weekly roundup of notable press releases for July 13–17, 2026, highlighting 13 announcements across consumer, technology, and finance sectors. Olive Garden announced the return of its Never-Ending Pasta Pass, offering 13 weeks of unlimited pasta, sauces, and toppings during the Never-Ending Pasta Bowl promotion. KFC brought back Popcorn Chicken as part of its Kentucky Fried Comeback journey, responding to fan demand. United Airlines introduced a new Economy Plus seating option on its Airbus A321XLR aircraft, featuring extra elbow room and a shared table across an open middle seat, available for sale later this year. 3M and Microsoft announced a strategic partnership to advance AI data center infrastructure by combining Microsoft’s digital and hyperscale capabilities with 3M’s materials science and precision manufacturing. Other highlighted releases included Thomson Reuters and KKR forming a joint venture for Thomson Reuters’ Global Print business, with KKR acquiring a 51% stake and Thomson Reuters receiving approximately $500 million in gross proceeds while retaining 49% equity; Jeep unveiling the 2027 Wrangler Laredo; Lilly acquiring AtaiBeckley to develop therapies for treatment-resistant depression; Chesapeake Utilities’ Florida Energy Pathway Project; The Home Depot’s 2026 Halloween collection; Farmers Insurance introducing tools to simplify insurance understanding; State Affairs raising $70 million for policy and regulatory intelligence; AT&T offering free calls to countries in soccer’s semifinal, third-place, and final matches; and OpenTable revealing its 2026 Top 100 Hotel Restaurants in America.

Visa, NextEra Energy, and Home Depot each delivered fresh dividend increases in recent months, backed by explicit growth commitments and strong cash flow. Visa raised its quarterly payout 14% to 67 cents per share, supported by a 25.7% jump in operating cash flow to $6.78 billion in its fiscal first quarter. NextEra Energy lifted its dividend to $0.6232 per share as part of a plan targeting roughly 10% annual growth through 2026, with adjusted earnings per share up 10% year-over-year. Home Depot extended its streak to 156 consecutive quarterly dividends with a modest 1.3% hike to $2.33 per share, reflecting muted earnings growth expectations amid pressure on big-ticket demand. All three companies maintain payout ratios that leave room for further increases, with Visa and NextEra signaling double-digit growth trajectories and Home Depot relying on operational discipline and a potential housing recovery.

Home Depot has expanded its partnership with Military Exchanges to ship more than 20,000 tax-free home improvement products to APO, FPO and DPO addresses across more than 80 countries. The company's shares are trading at $343.30, and the most followed narrative on Simply Wall St points to a fair value of about $370.18, suggesting the stock may be undervalued. The narrative is based on steady revenue gains, improving margins and a richer earnings profile, discounted at 8.53%. However, the market is assigning a P/E of 24.4x, slightly above the peer average of 23.5x and the US Specialty Retail industry at 20x, with a fair ratio of 24.8x. Home Depot's targeted acquisitions and continued expansion of its Pro customer ecosystem are positioning it as the supplier of choice for complex, higher-ticket projects, though slower large project demand and higher capital spending needs could weigh on margins and cash flow.

Home Depot has expanded its free Pro Xtra Rewards program by adding four new perks from different brands, aiming to attract professional contractors amid weak consumer demand. The new offers include $0.25 off per gallon at 7-Eleven gas stations, a $20 discount on Jimmy John's orders over $100, 20% off Tecovas work boots, and a seven-day free trial plus two free months of Rosie's AI Answering Service. The company said these perks, embedded in its app, will refresh quarterly based on direct feedback from Pro customers. The move comes as Home Depot's U.S. comparable sales rose only 0.4% in the first quarter of 2026, with CEO Ted Decker citing uncertainty holding back large home improvement projects.

The Home Depot announced the expansion of its partnership with the Military Exchanges to include delivery to Army Post Office, Fleet Post Office, and Diplomatic Post Office addresses, providing overseas military communities with tax-free access to more than 20,000 home improvement products. Available through the Army & Air Force Exchange Service and Navy Exchange Service Command, the program enables eligible military exchange shoppers to purchase products from The Home Depot and have them delivered directly to overseas military bases, serving families stationed at more than 750 bases across over 80 countries. Eligible shoppers include active-duty service members, National Guard members, Reservists, retirees, honorably discharged veterans, and authorized civilians, who can access the program through AAFES and NEXCOM online shopping platforms. Delivery is facilitated through USPS in accordance with military mailing and security requirements, and the new capability officially launches July 8, 2026.

Home Depot's push into HVAC and professional contractor services is drawing investor attention as a potential catalyst that could reshape its competitive standing against Lowe's. The company recently rolled out AI-powered tools for Pro Xtra members, including Material List Builder and an expanded Pro digital workspace, aiming to simplify complex job planning and support higher-value projects. Analysts project Home Depot could reach $187.2 billion in revenue and $17.3 billion in earnings by 2029, implying 4.0% annual revenue growth and a $3.3 billion earnings increase from the current $14.0 billion. However, concerns persist over operating margin pressure and elevated capital spending, with community fair value estimates clustering between $351 and $370, suggesting limited upside from the current price.

Home Depot holds a stronger investment position than Lowe's, according to a Zacks Investment Research analysis, driven by its larger scale, robust professional customer ecosystem, and expanding addressable market. Home Depot's first-quarter fiscal 2026 sales rose 4.8% year over year to $41.8 billion, while Lowe's sales increased 10.3% to $23.1 billion, though Lowe's saw broader downward EPS revisions. Home Depot trades at a forward P/E of 21.1X, above Lowe's 16.66X, but both stocks sit below their five-year medians. The report notes Home Depot's better estimate revision trends and recent stock performance, with Lowe's shares down 8.6% over three months versus Home Depot's 1.3% decline, reflecting greater investor confidence in Home Depot's execution and earnings visibility.

Home Depot reaffirmed its full-year margin guidance and maintained its quarterly dividend of US$2.33 per share, extending a streak of 157 consecutive quarterly payments. The reaffirmation comes despite a soft home improvement backdrop and housing affordability pressures, with management still targeting modest sales growth and relatively stable profitability. The company's narrative projects $187.2 billion in revenue and $17.3 billion in earnings by 2029, requiring 4.0% yearly revenue growth and a $3.3 billion earnings increase from $14.0 billion today. Community fair value estimates range from US$333.99 to US$370.18, implying an 11% upside to the current price at the high end.