The Home Depot (HD) Q4 2025 earnings summary

Executive summary

• Fiscal 2024 sales reached $159.5 billion, up 4.5% year-over-year, with comp sales down 1.8% and U.S. comps also down 1.8%.

• Fourth quarter 2024 sales rose 14.1% year-over-year to $39.7B, aided by a 53rd/14th week that contributed $2.5B in sales.

• Adjusted diluted EPS for Q4 was $3.13, up from $2.86 last year; full-year adjusted EPS was $15.24, nearly flat year-over-year.

• SRS acquisition contributed $6.4 billion in sales for the seven months of ownership, with over 20 new locations opened and four tuck-in acquisitions.

• Board approved a 2.2% increase in quarterly dividend to $2.30 per share, marking the 152nd consecutive quarterly dividend.

Financial highlights

• Comparable sales for Q4 2024 increased 0.8% overall and 1.3% in the U.S.; for fiscal 2024, comparable sales declined 1.8%.

• Gross margin for Q4 was 32.8%, down 25 bps year-over-year due to SRS mix; full-year gross margin was 33.4%, up 5 bps.

• Operating margin for Q4 was 11.3% (adjusted: 11.7%), and for the year 13.5% (adjusted: 13.8%).

• Diluted EPS for Q4 was $3.02 (+7% YoY); full-year diluted EPS was $14.91 (-1.3% YoY); adjusted full-year EPS was $15.24 (flat YoY).

• Inventory at year-end was $23.5 billion, up $2.5 billion YoY; inventory turns improved to 4.7x from 4.3x.

Outlook and guidance

• Fiscal 2025 guidance: total sales growth ~2.8%, comp sales growth ~1%, adjusted diluted EPS to decline ~2%.

• Gross margin expected to be flat at ~33.4%; operating margin ~13%, adjusted operating margin ~13.4%.

• SRS expected to deliver mid-single-digit organic growth in 2025.

• Capital expenditures planned at ~2.5% of sales, reflecting ongoing new store program; tax rate ~24.5%; net interest expense ~$2.2B.

• 13 new stores planned for 2025.