Home Depot Tops Q1 Estimates, Reaffirms Forecast, And Says It Won’t Raise Prices – Stock Pops Pre-Market

Home Depot (HD) shares rose as much as 3% in pre-market trade on Tuesday after the home improvement company reported upbeat revenue, maintained its full-year guidance, and said it has no plans to hike prices despite President Donald Trump’s tariffs. 

The retailer reported revenue of $39.9 billion, ahead of the $39.25 billion estimated by analysts, according to Koyfin data.

However, tis adjusted earnings per share (EPS) came in at $3.56, falling short of the forecast of $3.59. Net income for the first quarter (Q1) was $3.4 billion, up from $3.6 billion a year ago. 

The company also reaffirmed its guidance for fiscal 2025, expecting total sales growth of approximately 2.8%, gross margins of 33.4%, an operating margin of 13%, and diluted earnings per share to decline 3% from $14.91 in 2024.

The forecast assumes that the truce between the U.S. and China will hold, keeping tariffs on imports from China at 30% and 10% for other countries. 

“Because of our sales, the great partnerships we have with our suppliers, and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio, “ CEO Richard McPhail told CNBC in an interview. 

This is in contrast to fellow retailer Walmart (WMT), which, during its earnings announcement last week, said it would have to raise prices starting at the end of May to cover higher costs from tariffs.

In Q1, comparable sales dropped 0.3% across the company and dipped 0.2% in the U.S.. 

According to McPhail, the drop in sales resulted from a lull in February due to poor weather.

“We clawed our way back through the remainder of the quarter and had a great April, and we’ve seen the level of customer engagement that we saw in April continue into the first few weeks of May,” he told CNBC. 

As of Monday’s close, Home Depot’s stock is down 3.25% this year but has gained 11.2% over the past 12 months. 

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