The Home Depot Inc. (NYSE:HD) reaffirmed its fiscal 2026 outlook after reporting first-quarter sales growth and modestly positive comparable sales.
Here’s what management highlighted on the earnings call about weather trends, Pro demand, and margin pressures shaping the rest of the year.
Weather Drives Outlook, Not Demand Recovery
Home Depot reported first-quarter sales of $41.8 billion, up 4.8% year over year, with comparable sales rising 0.6% overall and 0.4% in the U.S.
CEO Ted Decker said expectations for a stronger second-half performance are “solely driven by a return to normal storm activity,” not improving consumer demand trends.
Management said weather weakened comparable sales during the final two weeks of April, while May trends normalized.
The company reiterated fiscal 2026 guidance for flat-to-2 % comparable sales growth and total sales growth of 2.5% to 4.5%.
Cost Pressures And Margin Impact Remain In Focus
Management said fuel, tariff, and commodity costs have shifted to a negative bias since last quarter, though potential tariff refunds could partly offset those pressures.
Adjusted diluted EPS declined to $3.43 from $3.56 a year earlier as operating margins continued to face pressure from the GMS acquisition.
Management did not provide a buyback timeline despite direct investor questions and instead emphasized the dividend as its primary shareholder return tool.
Pro Strategy And Execution Investments Continue
Home Depot continued to emphasize investments in Pro customers, including trade credit, delivery reliability, digital tools, and jobsite …