Home Depot stock slips after revenue beat with home improvement challenges in focus

Published On Feb 25, 2025, 7:03 AM

Home Depot's stock fell following a revenue report that slightly exceeded analysts' expectations. The company reported a 14.1% year-over-year revenue increase to $39.70 billion for the fourth quarter, along with adjusted earnings per share of $3.02, which missed analyst estimates of $3.04. The ongoing challenges in the home improvement sector stem from high-interest rates and a cautious consumer spending environment. Despite a growth in foot traffic and an uptick in average ticket size, same-store sales growth remained low, indicating a struggle for the company to stimulate significant spending in light of current economic conditions. With a muted outlook predicting only a 2.8% growth in total net sales for 2025, the stock is facing downward pressure due to continuing economic headwinds and competitive dynamics within the sector.