Home Depot is struggling to reverse a concerning customer trend that continues to impact sales, despite recent efforts to boost demand. In the second quarter of this year, the home improvement chain's comparable U.S. sales increased by 1.3% year over year, but in-store foot traffic declined, with average visits per location dipping 0.6% year over year, steeper than the 0.4% decrease at top rival Lowe's. Chief Financial Officer Richard McPhail said on an earnings call that consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects, with the number of bigger-ticket projects falling 2.1% over last year. McPhail noted that housing turnover has been at historical lows, with the rate dropping to 2.8% last year, the lowest in at least three decades, and he sees no sign of an inflection point. Home Depot expects comparable sales to remain flat or increase by up to 2% in fiscal year 2026, and is betting on customer experience improvements, including Express Delivery at more than 2,000 U.S. locations and an updated appliance delivery model.
The Home Depot IncCustomer trend of declining foot traffic and larger project demand pressures sales.
Lowe's Companies IncLowe's mentioned as comparison with slightly better foot traffic decline, but no direct impact stated.
