Home Depot Reports 4.9% Revenue Growth to $45.3 Billion in Q2 Fiscal 2025

Home Depot, Inc. reported its financial results for the second quarter of fiscal 2025, revealing net sales of $45.3 billion, a 4.9% increase from $43.2 billion in the same period last year. The company's net earnings for the quarter were $4.6 billion, or $4.58 per diluted share, slightly down from $4.60 per diluted share in the prior year. For the first six months of fiscal 2025, net sales reached $85.1 billion, up 7.0% from $79.6 billion, while net earnings totaled $8.0 billion, or $8.03 per diluted share, compared to $8.23 per diluted share in the first half of fiscal 2024.

The increase in sales was primarily driven by the acquisition of SRS, which contributed $1.8 billion in incremental net sales during the second quarter. Additionally, the company experienced a positive comparable sales environment, although this was partially offset by a calendar shift that resulted in one less week of spring sales. Online sales represented 15.6% of total net sales for the quarter, reflecting a 10.1% increase compared to the previous year. However, a stronger U.S. dollar negatively impacted net sales by approximately $163 million.

Home Depot's operational metrics showed a total of 2,353 stores as of August 3, 2025, with three new stores opened during the quarter. The company reported an inventory turnover ratio of 4.6 times, down from 4.9 times a year earlier, attributed to higher average inventory levels. The total number of customer transactions decreased by 0.9% to 446.8 million, while the average ticket size increased by 1.2% to $90.01. The company’s return on invested capital (ROIC) for the trailing twelve months was 27.2%, down from 31.9% in the previous year, primarily due to increased long-term debt from the SRS acquisition.

Strategically, Home Depot is in the process of acquiring GMS, a leading distributor of specialty building products, for approximately $4.3 billion in cash. This acquisition is expected to close in the second half of fiscal 2025, pending regulatory approvals. The company has paused share repurchases since March 2024, with approximately $11.7 billion remaining under its $15 billion share repurchase authorization. Home Depot continues to focus on enhancing its customer experience and expanding its product offerings while managing macroeconomic challenges, including high interest rates that affect large home improvement projects.

Looking ahead, Home Depot anticipates continued growth driven by its strategic initiatives and acquisitions, although it remains cautious about the potential impacts of macroeconomic conditions on consumer spending. The company plans to invest approximately $4 billion in capital expenditures for fiscal 2025, focusing on technology improvements and new store openings.