Today, Home Depot Inc. provided cautious preliminary guidance for next year, as the company’s VP and CFO indicated that the home-improvement retailer does not expect the housing market to rebound in the near term.
For fiscal 2025, the company expects comparable sales growth of approximately 3%.
Moving into fiscal 2026, the company is providing a preliminary outlook of comparable sales growth of approximately flat to 2%, while the home improvement market is forecasted to range between -1% and +1%.
Richard McPhail, Executive Vice President and Chief Financial Officer, told investors, “Our Market Recovery Case reflects our performance expectations once we see momentum in housing activity and increased spend on larger projects driven by pent-up demand. We believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy, and we expect to continue to grow faster than our market. In our Accelerated Recovery Case, we could see sales and earnings per share grow faster in the event of a sharper housing recovery.”
Ted Decker, Chair, President, and CEO stated, “We are focused on growing sales and delivering exceptional shareholder returns, supported by our culture and values. The investments we’ve made over the last several years have further strengthened our distinct competitive advantages and position us well to grow share in an approximately $1.1 trillion total addressable market.”
Home Depot’s results have differed from those of other major retailers like Walmart Inc., which have continued to grow despite challenges in the US.
Today, Home Depot will host an investor day to discuss its plans for the future.
By CEO NA Editorial Staff
