HOME DEPOT, INC.
For the period ended Aug 3, 2025. Filed Aug 26, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 3, 2025 · Filed Aug 26, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 2. Results of Operations
RESULTS OF OPERATIONS
The following table presents the percentage relationship between net sales and major categories in our consolidated statements of earnings.
FISCAL 2025 AND FISCAL 2024 THREE MONTH COMPARISONS
| Three Months Ended | |||||
|---|---|---|---|---|---|
| August 3, 2025 · July 28, 2024 | |||||
| dollars in millions · $ · % of Net Sales · $ · % of Net Sales | |||||
| Net sales | $45,277 | $43,175 | |||
| Gross profit | 15,125 | 33.4% | 14,416 | 33.4% | |
| Operating expenses: | |||||
| Selling, general and administrative | 7,764 | 17.1 | 7,144 | 16.5 | |
| Depreciation and amortization | 806 | 1.8 | 738 | 1.7 | |
| Total operating expenses | 8,570 | 18.9 | 7,882 | 18.3 | |
| Operating income | 6,555 | 14.5 | 6,534 | 15.1 | |
| Interest and other (income) expense: | |||||
| Interest income and other, net | (25) | (0.1) | (84) | (0.2) | |
| Interest expense | 575 | 1.3 | 573 | 1.3 | |
| Interest and other, net | 550 | 1.2 | 489 | 1.1 | |
| Earnings before provision for income taxes | 6,005 | 13.3 | 6,045 | 14.0 | |
| Provision for income taxes | 1,454 | 3.2 | 1,484 | 3.4 | |
| Net earnings | $4,551 | 10.1% | $4,561 | 10.6% | |
Note: Certain percentages may not sum to totals due to rounding.
| Three Months Ended | |||
|---|---|---|---|
| Selected financial and sales data: | August 3,2025 | July 28,2024 | % Change |
| Comparable sales (% change) | 1.0% | (3.3)% | N/A |
| Comparable customer transactions (% change) (1) | (0.4)% | (2.2)% | N/A |
| Comparable average ticket (% change) (1) (2) | 1.4% | (1.3)% | N/A |
| Customer transactions (in millions) (1) | 446.8 | 451.0 | (0.9)% |
| Average ticket (1) (2) | $90.01 | $88.90 | 1.2% |
| Diluted earnings per share | $4.58 | $4.60 | (0.4)% |
(1)Customer transactions and average ticket measures do not include results from HD Supply or SRS.
(2)Average ticket represents the average price paid per transaction and is used by management to monitor the performance of the Company, as it represents a primary driver in measuring sales performance.
Sales
We assess our sales performance by evaluating both net sales and comparable sales. In fiscal 2025, there is a one-week calendar shift as a result of the 53rd week in fiscal 2024. For purposes of the following discussion, comparable sales, comparable customer transactions, and comparable average ticket are based upon the comparable 13-week period from fiscal 2024.
Net Sales. Net sales for the second quarter of fiscal 2025 were $45.3 billion, an increase of 4.9% from $43.2 billion for the second quarter of fiscal 2024. The increase in net sales for the second quarter of fiscal 2025 was primarily driven by SRS, which was acquired on June 18, 2024, and contributed $1.8 billion of incremental net sales during the second quarter of fiscal 2025. Net sales also increased due to the impact of a positive comparable sales environment and sales from new stores, partially offset by the calendar shift which resulted in the second quarter of fiscal 2025 including one less week of spring and one additional week of summer.
| Fiscal Q2 2025 Form 10-Q | 16 |
|---|
Online sales, which consist of sales of products generated through websites and mobile applications, represented 15.6% of net sales during the second quarter of fiscal 2025 and increased by 10.1% compared to the second quarter of fiscal 2024. Calculated on a comparable week basis relative to fiscal 2024, online sales increased by 11.5%.
A stronger U.S. dollar compared to the second quarter of fiscal 2024 negatively impacted net sales by $163 million during the second quarter of fiscal 2025.
Comparable Sales. Comparable sales is a measure that highlights the performance of our existing locations and websites by measuring the change in net sales for a period over the comparable prior period of equivalent length. Comparable sales includes sales at locations, physical and online, open greater than 52 weeks (including remodels and relocations) and excludes closed stores. Acquisitions are typically included in comparable sales after they have been owned for more than 52 weeks. Fiscal 2025 includes 52 weeks and fiscal 2024 included 53 weeks. For our calculation of comparable sales in fiscal 2025, we will compare weeks 1 through 52 in fiscal 2025 against weeks 2 through 53 in fiscal 2024. Comparable sales is intended only as supplemental information and is not a substitute for net sales presented in accordance with GAAP. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as similarly titled measures reported by other companies.
Total comparable sales for the second quarter of fiscal 2025 increased 1.0%, primarily reflecting a 1.4% increase in comparable average ticket and a 0.4% decrease in comparable customer transactions compared to the second quarter of fiscal 2024. Foreign exchange rates negatively impacted comparable sales by approximately 40 basis points for the quarter. Our comparable sales results reflect broader customer engagement with smaller home improvement projects, which was offset by the continued impact of macroeconomic uncertainties and other macroeconomic factors, including a persisting high interest rate environment pressuring large home improvement project demand.
During the second quarter of fiscal 2025, our Storage & Organization, Bath, Hardware, Building Materials, Indoor Garden, Electrical, Kitchen & Blinds, Outdoor Garden, Millwork, Power, Plumbing, and Appliances merchandising departments within our Primary segment posted positive comparable sales compared to the second quarter of fiscal 2024.
Gross Profit
Gross profit for the second quarter of fiscal 2025 increased 4.9% to $15.1 billion from $14.4 billion for the second quarter of fiscal 2024. Gross profit as a percentage of net sales, or gross profit margin, was 33.4% for both the second quarters of fiscal 2025 and 2024, and reflects benefits from shrink and supply chain efficiencies within our Primary segment in the second quarter of fiscal 2025, offset by the inclusion of SRS in our consolidated results for the full second quarter of fiscal 2025.
Operating Expenses
Our operating expenses are composed of SG&A and depreciation and amortization.
Selling, General & Administrative. SG&A for the second quarter of fiscal 2025 increased $620 million, or 8.7%, to $7.8 billion from $7.1 billion for the second quarter of fiscal 2024. As a percentage of net sales, SG&A was 17.1% for the second quarter of fiscal 2025 compared to 16.5% for the second quarter of fiscal 2024, primarily reflecting the impact of higher payroll and related costs in the second quarter of fiscal 2025 within our Primary segment.
Depreciation and Amortization. Depreciation and amortization for the second quarter of fiscal 2025 increased $68 million, or 9.2%, to $806 million from $738 million for the second quarter of fiscal 2024. As a percentage of net sales, depreciation and amortization was 1.8% for the second quarter of fiscal 2025 compared to 1.7% for the second quarter of fiscal 2024, primarily reflecting increased intangible asset amortization expense related to SRS.
Interest and Other, net
Interest and other, net for the second quarter of fiscal 2025 increased $61 million, or 12.5%, to $550 million from $489 million for the second quarter of fiscal 2024. As a percentage of net sales, interest and other, net was 1.2% for the second quarter of fiscal 2025 compared to 1.1% for the second quarter of fiscal 2024, primarily reflecting higher long-term debt balances and lower interest income in the second quarter of fiscal 2025, partially offset by lower commercial paper borrowings during the second quarter of fiscal 2025.
| Fiscal Q2 2025 Form 10-Q | 17 |
|---|
Provision for Income Taxes
Our combined effective income tax rate was 24.2% for the second quarter of fiscal 2025 compared to 24.5% for the second quarter of fiscal 2024.
Diluted Earnings per Share
Diluted earnings per share were $4.58 for the second quarter of fiscal 2025 compared to $4.60 for the second quarter of fiscal 2024.
FISCAL 2025 AND FISCAL 2024 SIX MONTH COMPARISONS
| Six Months Ended | |||||
|---|---|---|---|---|---|
| August 3, 2025 · July 28, 2024 | |||||
| dollars in millions · $ · % of Net Sales · $ · % ofNet Sales | |||||
| Net sales | $85,133 | $79,593 | |||
| Gross profit | 28,584 | 33.6% | 26,849 | 33.7% | |
| Operating expenses: | |||||
| Selling, general and administrative | 15,294 | 18.0 | 13,811 | 17.4 | |
| Depreciation and amortization | 1,602 | 1.9 | 1,425 | 1.8 | |
| Total operating expenses | 16,896 | 19.8 | 15,236 | 19.1 | |
| Operating income | 11,688 | 13.7 | 11,613 | 14.6 | |
| Interest and other (income) expense: | |||||
| Interest income and other, net | (49) | (0.1) | (141) | (0.2) | |
| Interest expense | 1,190 | 1.4 | 1,058 | 1.3 | |
| Interest and other, net | 1,141 | 1.3 | 917 | 1.2 | |
| Earnings before provision for income taxes | 10,547 | 12.4 | 10,696 | 13.4 | |
| Provision for income taxes | 2,563 | 3.0 | 2,535 | 3.2 | |
| Net earnings | $7,984 | 9.4% | $8,161 | 10.3% | |
Note: Certain percentages may not sum to totals due to rounding.
| Six Months Ended | |||
|---|---|---|---|
| Selected financial and sales data: | August 3,2025 | July 28,2024 | % Change |
| Comparable sales (% change) | 0.4% | (3.1)% | N/A |
| Comparable customer transactions (% change) (1) | (0.5)% | (1.9)% | N/A |
| Comparable average ticket (% change) (1) (2) | 0.7% | (1.3)% | N/A |
| Customer transactions (in millions) (1) | 841.6 | 837.8 | 0.5% |
| Average ticket (1) (2) | $90.34 | $89.72 | 0.7 |
| Diluted earnings per share | $8.03 | $8.23 | (2.4)% |
(1)Customer transactions and average ticket measures do not include results from HD Supply or SRS.
(2)Average ticket represents the average price paid per transaction and is used by management to monitor the performance of the Company, as it represents a primary driver in measuring sales performance.
Sales
We assess our sales performance by evaluating both net sales and comparable sales. In fiscal 2025, there is a one-week calendar shift as a result of the 53rd week in fiscal 2024. For purposes of the following discussion, comparable sales, comparable customer transactions, and comparable average ticket are based upon the comparable 26-week period from fiscal 2024.
| Fiscal Q2 2025 Form 10-Q | 18 |
|---|
Net Sales. Net sales for the first six months of fiscal 2025 were $85.1 billion, an increase of 7.0% from $79.6 billion for the first six months of fiscal 2024. The increase in net sales for the first six months of fiscal 2025 was primarily driven by SRS, which was acquired on June 18, 2024, and contributed $4.4 billion of incremental net sales during the first six months of fiscal 2025. Net sales also increased due to the impact of a positive comparable sales environment and sales from new stores. Additionally, due to the 53rd week in fiscal 2024, the first six months of fiscal 2025 included one less week of winter and one additional week of summer, which further contributed to the increase in net sales in the first six months of fiscal 2025.
Online sales represented 15.6% of net sales during the first six months of fiscal 2025 and increased by 10.5% compared to the first six months of fiscal 2024. Calculated on a comparable week basis relative to fiscal 2024, online sales increased by 10.0%.
A stronger U.S. dollar compared to the first six months of fiscal 2024 negatively impacted net sales by $437 million during the first six months of fiscal 2025.
Comparable Sales. Total comparable sales for the first six months of fiscal 2025 increased 0.4%, reflecting a 0.7% increase in comparable average ticket and a 0.5% decrease in comparable customer transactions compared to the first six months of fiscal 2024. Foreign exchange rates negatively impacted comparable sales by approximately 55 basis points for the first six months of fiscal 2025. Our comparable sales results reflect broader customer engagement with smaller home improvement projects, which was offset by the impact of macroeconomic uncertainties and other macroeconomic factors, including a persisting high interest rate environment pressuring large home improvement project demand.
During the first six months of fiscal 2025, our Storage & Organization, Indoor Garden, Building Materials, Electrical, Outdoor Garden, Appliances, Plumbing, Bath, Hardware, and Kitchen & Blinds merchandising departments within our Primary segment posted positive comparable sales compared to the first six months of fiscal 2024.
Gross Profit
Gross profit for the first six months of fiscal 2025 increased 6.5% to $28.6 billion from $26.8 billion for the first six months of fiscal 2024. Gross profit as a percentage of net sales, or gross profit margin, was 33.6% for the first six months of fiscal 2025 compared to 33.7% for the first six months of fiscal 2024. The decrease in gross profit margin during the first six months of fiscal 2025 reflects the inclusion of SRS in our consolidated results for the full first six months of fiscal 2025, partially offset by benefits from shrink and supply chain efficiencies within our Primary segment.
Operating Expenses
Our operating expenses are composed of SG&A and depreciation and amortization.
Selling, General & Administrative. SG&A for the first six months of fiscal 2025 increased $1.5 billion, or 10.7%, to $15.3 billion from $13.8 billion for the first six months of fiscal 2024. As a percentage of net sales, SG&A was 18.0% for the first six months of fiscal 2025 compared to 17.4% for the first six months of fiscal 2024, which primarily reflects higher payroll and related costs during the first six months of fiscal 2025 along with the impact of a non-recurring legal-related benefit recognized during the first six months of fiscal 2024 within our Primary segment.
Depreciation and Amortization. Depreciation and amortization for the first six months of fiscal 2025 increased $177 million, or 12.4%, to $1.6 billion from $1.4 billion for the first six months of fiscal 2024. As a percentage of net sales, depreciation and amortization was 1.9% for the first six months of fiscal 2025 and 1.8% for the first six months of fiscal 2024, primarily reflecting increased intangible asset amortization expense related to SRS.
Interest and Other, net
Interest and other, net for the first six months of fiscal 2025 increased $224 million, or 24.4%, to $1.1 billion from $917 million for the first six months of fiscal 2024. As a percentage of net sales, interest and other, net was 1.3% for the first six months of fiscal 2025 compared to 1.2% for the first six months of fiscal 2024, primarily due to higher long-term debt balances and lower interest income in fiscal 2025, partially offset by lower commercial paper borrowings during fiscal 2025.
Provision for Income Taxes
Our combined effective income tax rate was 24.3% for the first six months of fiscal 2025 compared to 23.7% for the first six months of fiscal 2024. The increase in our effective tax rate was driven by certain discrete tax benefits recognized during the first six months of fiscal 2024.
| Fiscal Q2 2025 Form 10-Q | 19 |
|---|
Diluted Earnings per Share
Diluted earnings per share were $8.03 for the first six months of fiscal 2025, compared to $8.23 for the first six months of fiscal 2024. The decrease in diluted earnings per share was primarily driven by lower net earnings during the first six months of fiscal 2025.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.