The Home Depot reported their first quarter earnings today giving us a peek into how spring is going. Overall, their business is meeting their expectations and they affirmed guidance for the year.
They remarked that they are seeing similar levels of demand this year as last year. With the situation in the Middle East and rising fuel prices, that’s a win.
Our results were in line with our expectations. In the U.S., our Northern and Western divisions had positive comps as customers engage in outdoor projects when weather was favorable. In local currency, Mexico had positive comps, while Canada was negative. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025 and despite greater consumer uncertainty and housing affordability pressure.
Ted Decker, President and CEO of The Home Depot
Double-clicking into their comp sales this year, they’re continuing the trend of lower transactions with a higher average ticket. This makes sense given inflation and pricing actions over the past year. They don’t break down how much of that dynamic is from raising prices versus merchandising.
During the first quarter, our comp average ticket increased 2.2%, and comp transactions decreased 1.3%. Big ticket comp transactions for those over $1,000 were positive 0.8% compared to the first quarter of last year. We were pleased with the performance we saw in portable power and patio. However, larger discretionary projects remain under pressure.
Billy Bastek, EVP of Merchandising at The Home Depot
One area that consistently sees growth for The Home Depot, and other large hardware retailers, is with digital sales. To help drive the growth, they’ve focused on fast shipping times.
Sales leveraging our digital platforms increased over 10% compared to the first quarter of last year. This is the fourth quarter in a row with double-digit year-over-year growth, driven by our ongoing investments across our interconnected platforms. Delivering the best interconnected experience is a key component of our strategy.
Billy Bastek, EVP of Merchandising at The Home Depot