Residence Depot Updates Technique and Reaffirms Fiscal Steerage by way of 2026

ATLANTA, Dec. 9, 2025 /PRNewswire/ — The Residence Depot^®, the world’s largest house enchancment retailer, will talk about key strategic priorities, present a preliminary 2026 outlook and a market restoration case, in the present day at its 2025 Investor and Analyst Convention. 

Right now’s convention will start at 8:30 a.m. ET and will likely be out there in its entirety by way of a dwell webcast and replay at ir.homedepot.com/events-and-presentations.

Throughout in the present day’s convention, the corporate will talk about how it’s uniquely positioned to develop market share and ship shareholder worth by way of its technique to: drive core and tradition, ship a frictionless interconnected expertise, and win the professional.

“We’re targeted on rising gross sales and delivering distinctive shareholder returns, supported by our tradition and values,” mentioned Ted Decker, chair, president, and CEO. “The investments we have made over the past a number of years have additional strengthened our distinct aggressive benefits and place us nicely to develop share in an roughly $1.1 trillion complete addressable market.”

Fiscal 12 months 2025 Steerage

The corporate reaffirms its fiscal 2025 steering, a 52-week 12 months in comparison with fiscal 2024, a 53-week 12 months:

• Complete gross sales development of roughly 3%
  • GMS anticipated to contribute roughly $2 billion in incremental gross sales
• Comparable gross sales development to be barely constructive for the comparable 52-week interval
• Roughly 12 new shops
• Gross margin of roughly 33.2%
• Working margin of roughly 12.6%
• Adjusted⁽¹⁾ working margin of roughly 13.0%
• Tax fee of roughly 24.5%
• Web curiosity expense of roughly $2.3 billion
• Diluted earnings-per-share to say no roughly 6% from $14.91 in fiscal 2024
• Adjusted⁽¹⁾ diluted earnings-per-share to say no roughly 5% from $15.24 in fiscal 2024
• Capital expenditures of roughly 2.5% of complete gross sales

Preliminary Fiscal 12 months 2026 Outlook

Right now, the corporate is offering a preliminary outlook for fiscal 2026:

• Residence enchancment market in a spread between -1% to +1%
• Comparable gross sales development of roughly flat to 2%
• Complete gross sales development of roughly 2.5% to 4.5%
• Working margin of roughly 12.4% to 12.6%
• Adjusted⁽¹⁾ working margin of roughly 12.8% to 13.0%
• Diluted earnings-per-share to extend roughly flat to 4%
• Adjusted⁽¹⁾ diluted earnings-per-share to extend roughly flat to 4%

Market Restoration Case

Right now, the corporate can also be offering a market restoration case:

• Complete gross sales development of roughly 5% to six%
• Complete comparable gross sales development of roughly 4% to five%
• Working revenue development sooner than gross sales
• Diluted earnings-per-share development of roughly mid-to-high-single-digits

“Our Market Restoration Case displays our efficiency expectations as soon as we see momentum in housing exercise and elevated spend on bigger initiatives pushed by pent-up demand. We imagine that the pressures in housing will right and supply the house enchancment market with assist for development sooner than the overall economic system, and we anticipate to proceed to develop sooner than our market,” mentioned Richard McPhail, govt vp and chief monetary officer. “In our Accelerated Restoration Case, we might see gross sales and earnings per share develop sooner within the occasion of a sharper housing restoration.”

On the finish of the third quarter, the corporate operated a complete of two,356 retail shops and over 1,200 SRS areas throughout all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Firm employs over 470,000 associates. The Residence Depot’s inventory is traded on the New York Inventory Alternate (NYSE: HD) and is included within the Dow Jones industrial common and Normal & Poor’s 500 index.

Cautionary Observe Concerning Ahead-Wanting Statements

Sure statements contained on this launch represent “forward-looking statements” beneath the federal securities legal guidelines, together with as outlined within the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements are based mostly on at the moment out there info and our present assumptions, expectations and projections about future occasions, and use phrases similar to “could,” “will,” “might,” “ought to,” “would,” “anticipate,” “intend,” “estimate,” “challenge,” “plan,” “imagine,” “anticipate,” “goal,” “prospects,” “potential,” “commit” and “forecast,” or phrases of comparable import or that means or consult with future time intervals. Ahead-looking statements could relate to, amongst different issues, the demand for our services, together with on account of macroeconomic circumstances and altering buyer preferences and expectations; internet gross sales development; comparable gross sales; the results of competitors; our model and fame; implementation of interconnected retail, retailer, provide chain, expertise, innovation and different strategic initiatives, together with with respect to actual property; stock and in-stock positions; the state of the economic system; the state of the housing and residential enchancment markets; the state of the credit score markets, together with mortgages, house fairness loans, and shopper and commerce credit score; the affect of tariffs, commerce coverage adjustments or restrictions, or worldwide commerce disputes and efforts and talent to proceed to diversify our provide chain; points associated to the cost strategies we settle for; demand for credit score choices together with commerce credit score; administration of relationships with our associates, jobseekers, suppliers and repair suppliers; value and availability of labor; prices of gasoline and different power sources; occasions that might disrupt our enterprise, provide chain, expertise infrastructure, or demand for our services, similar to tariffs, commerce coverage adjustments or restrictions or worldwide commerce disputes, pure disasters, local weather change, public well being points, cybersecurity occasions, labor disputes, geopolitical conflicts, navy conflicts, or acts of conflict; our capability to take care of a secure and safe retailer atmosphere; our capability to handle expectations concerning sustainability and human capital administration issues and meet associated objectives; continuation or suspension of share repurchases; internet earnings efficiency; earnings per share; future dividends; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; adjustments in rates of interest; adjustments in international forex alternate charges; commodity or different value inflation and deflation; our capability to difficulty debt on phrases and at charges acceptable to us; the affect and anticipated end result of investigations, inquiries, claims, and litigation, together with compliance with associated settlements; the challenges of working in worldwide markets; the adequacy of insurance coverage protection; the impact of accounting expenses; the impact of adopting sure accounting requirements; the affect of authorized and regulatory adjustments, together with govt orders and different administrative or legislative actions, similar to adjustments to tax legal guidelines and laws; retailer openings and closures; steering for fiscal 2025 and past; monetary outlook; and the affect of acquired firms, together with SRS Distribution Inc. and GMS Inc., on our group and the flexibility to acknowledge the anticipated advantages of accomplished or pending acquisitions.   

These statements should not ensures of future efficiency and are topic to future occasions, dangers and uncertainties – a lot of that are past our management, depending on the actions of third events, or at the moment unknown to us – in addition to doubtlessly inaccurate assumptions that might trigger precise outcomes to vary materially from our historic expertise and our expectations and projections. These dangers and uncertainties embody, however should not restricted to, these described in Half I, Merchandise 1A. “Threat Elements,” and elsewhere in our Annual Report on Kind 10-Okay for our fiscal 12 months ended February 2, 2025 and in addition as described once in a while in studies subsequently filed with the Securities and Alternate Fee. There additionally could also be different elements that we can not anticipate or that aren’t described herein, usually as a result of we don’t at the moment understand them to be materials. Such elements might trigger outcomes to vary materially from our expectations. Ahead-looking statements communicate solely as of the date they’re made, and we don’t undertake to replace these statements apart from as required by regulation. You’re suggested, nonetheless, to assessment any additional disclosures we make on associated topics in our filings with the Securities and Alternate Fee and in our different public statements.  

Non-GAAP Monetary Measures

To offer further transparency, we complement our disclosure with sure non-GAAP monetary measures. When used at the side of our GAAP monetary measures, we imagine these supplemental non-GAAP monetary measures will assist administration and buyers to higher perceive and analyze our efficiency. Nevertheless, this supplemental info shouldn’t be thought of in isolation or as an alternative to the associated GAAP measures. Discuss with the top of this launch for an evidence and definitions of those non-GAAP monetary measures and reconciliations to essentially the most straight comparable GAAP measures. 

NON-GAAP FINANCIAL MEASURES

Adjusted working revenue, adjusted working margin (calculated as adjusted working revenue divided by complete internet gross sales), and adjusted diluted earnings per share are offered as supplemental monetary measures within the analysis of our enterprise that aren’t required by or offered in accordance with GAAP. The Firm excludes the affect of amortization expense from acquired intangible property from adjusted working revenue and adjusted working margin, and the affect of amortization expense from acquired intangible property, together with the associated tax results, from adjusted diluted earnings per share. We don’t regulate for the income that’s generated partly from the usage of our acquired intangible property. Amortization expense, not like the associated income, shouldn’t be affected by operations in any specific interval except an intangible asset turns into impaired, or the helpful lifetime of an intangible asset is revised. 

When used at the side of our GAAP outcomes, we imagine these non-GAAP measures present buyers with significant supplemental measures of our efficiency interval to interval, make it simpler for buyers to match our underlying enterprise efficiency to friends, and align to how administration analyzes developments and evaluates efficiency internally. The Firm supplies non-GAAP monetary info on this foundation to facilitate comparability once we report earnings outcomes. These non-GAAP measures shouldn’t be thought of in isolation or as an alternative to their comparable GAAP monetary measures. Traders ought to rely totally on our GAAP outcomes and use non-GAAP monetary measures solely supplementally in making funding choices. Our calculation of non-GAAP measures will not be akin to equally titled measures reported by different firms and different firms could not outline these non-GAAP monetary measures in the identical manner, which can restrict their usefulness as comparative measures. 

Essentially the most straight comparable GAAP measure to adjusted working margin is working margin, which is calculated as working revenue divided by complete internet gross sales. Our adjusted working margin steering for fiscal 2025 and our preliminary outlook for fiscal 2026 excludes an anticipated roughly 40 foundation level affect in every fiscal 12 months, respectively, from acquired intangible asset amortization.  

Essentially the most straight comparable GAAP measure to adjusted diluted earnings per share is diluted earnings per share. Our adjusted diluted earnings per share steering for fiscal 2025 and our preliminary outlook for fiscal 2026 excludes an anticipated after-tax affect of roughly $0.45 and $0.50, respectively, from acquired intangible asset amortization. 

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SOURCE The Residence Depot