The Home Depot (HD) Goldman Sachs 32nd Annual Global Retailing Conference 2025 summary

Consumer and housing outlook

• Positive momentum in business with three consecutive quarters of positive comps, driven by broad-based engagement in smaller and repair projects across geographies and departments.

• Homeowners remain financially healthy, benefiting from significant home equity gains since 2019, despite low housing turnover and economic uncertainty limiting large project activity.

• Housing supply remains tight, with new builds barely keeping pace with household formation, contributing to continued home price appreciation.

• Anticipation of Fed rate cuts and normalization of economic conditions expected to eventually boost larger project activity.

• Second half of 2025 expected to improve as tax cut benefits flow to consumers.

Business performance and category trends

• 13 of 16 U.S. departments posted positive comps in Q2, with broad-based growth beyond seasonal categories.

• Growth observed in core categories like concrete, lumber, water heaters, and vanities, reflecting strong demand for smaller projects.

• Gaining market share in both consumer and Pro segments, supported by investments in delivery, digital platforms, and marketing.

Tariffs, pricing, and supply chain management

• Over half of goods are U.S.-manufactured, limiting tariff exposure; diversification strategies with suppliers and geographies have mitigated cost impacts.

• Focus remains on protecting project value for customers, with pricing teams actively managing impacts and maintaining competitive shelf prices.

• Inventory for the back half of the year is already in-house, supporting key events and tool promotions.

• Assortment rationalization ongoing, with SKUs adjusted based on tariff impacts and demand.