Home Depot, Inc. reported its financial results for the third quarter of fiscal 2025, revealing net sales of $41.4 billion, a 2.8% increase from $40.2 billion in the same period last year. The company's net earnings for the quarter were $3.6 billion, or $3.62 per diluted share, compared to $3.65 billion, or $3.67 per diluted share, in the prior year. For the first nine months of fiscal 2025, Home Depot's net sales reached $126.5 billion, up 5.6% from $119.8 billion, while net earnings totaled $11.6 billion, or $11.65 per diluted share, down from $11.8 billion, or $11.90 per diluted share, in the same period of fiscal 2024.
The increase in net sales for the third quarter was primarily attributed to the acquisition of GMS, which contributed $892 million in sales since its integration on September 4, 2025. The company also opened three new stores, bringing its total store count to 2,356, with 322 locations in Canada and Mexico. However, the company faced challenges, including a calendar shift that resulted in one less week of summer sales compared to the previous year, which impacted overall sales performance.
Operationally, Home Depot reported a decrease in its inventory turnover ratio to 4.5 times from 4.8 times a year earlier, driven by higher average inventory levels. Online sales represented 15.2% of total net sales during the quarter, reflecting an 11.4% increase year-over-year. The company also noted a 0.2% increase in comparable sales, with a 1.8% rise in the average ticket size offset by a 1.6% decline in customer transactions. The company’s gross profit margin remained stable at 33.4%, supported by lower shrink and supply chain efficiencies.
Strategically, Home Depot has been active in expanding its market presence through acquisitions, including the recent purchase of GMS, which is expected to enhance its distribution capabilities in the building materials sector. The company has also been managing its debt effectively, with a commercial paper program allowing for borrowings up to $11 billion, supported by $11 billion in backup credit facilities. As of November 2, 2025, Home Depot had $1.7 billion in cash and cash equivalents, positioning it well for future investments and operational needs.
Looking ahead, Home Depot anticipates continued growth driven by its strategic initiatives and market expansion efforts. The company plans to invest approximately $4 billion in capital expenditures for fiscal 2025, focusing on enhancing customer experience and expanding its Pro capabilities. Despite facing macroeconomic challenges, including high interest rates affecting large home improvement projects, Home Depot remains optimistic about its ability to navigate these conditions and deliver value to its shareholders.
About HOME DEPOT, INC.
The Home Depot, Inc. is the world's largest home improvement retailer, offering a broad range of building materials, appliances, decor, and MRO products through stores and online. Serving consumers and professionals, it provides products, installation services, tool rentals, and supply chain solutions. Its competitive advantages include a strong brand, extensive store network, integrated digital platforms, and a focus on customer experience, innovation, and operational efficiency.
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