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Home Depot came in with receipts
Home Depot posted Q1 sales of $41.8 billion and adjusted EPS of $3.43, both a hair above Street expectations. Not exactly a fireworks show, but in a market that’s been side-eyeing consumer spending, “beat and hold guidance” is a pretty decent flex.
The catch? The engine is humming, not roaring
The quarter wasn’t spotless. Comparable sales rose just 0.6%, missing estimates, transactions fell 1.3%, and margins got squeezed a bit. Translation: customers are still spending, but they’re not exactly running around with a new bathroom remodel in their back pocket.
Management kept the full-year script
The bigger deal for investors is that Home Depot didn’t blink on guidance. Management stuck with:
- sales growth of 2.5% to 4.5%
- comparable sales flat to up 2%
- gross margin around 33.1%
- adjusted earnings growth of flat to 4%
That steady hand matters. When a company tells you the year still looks fine after a choppy quarter, the market tends to reward the confidence more than the decimals.
Lowe’s gets drafted into the story
Because no retail earnings report can just be about one retailer, analysts also used Home Depot’s numbers to tee up Lowe’s, which reports Wednesday. JPMorgan said the results point to a possible beat there too — so yes, the home-improvement aisle is suddenly a mini soap opera.
Big picture: Home Depot didn’t deliver a blowout, but it did enough to reassure investors that the DIY slowdown isn’t turning into a full-on renovation recession.