Home Depot: Consumer ‘remarkably resilient’ despite rising costs, uncertainty

Still, the company saw its profit dip during the period. Home Depot reported net earnings of $3.3 billion in the first quarter, down 4.2% from the same period last year. Home Depot also saw declining profit in 2025.

Consumers continue to shy away from large renovation projects, executives said Tuesday. But the company noted a lift in spring-related categories such as outdoor power equipment, patio, grills and storage.

“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025 despite greater consumer uncertainty and housing affordability pressure,” Decker said on the conference call.

Home Depot is an economic bellwether and its financial results are closely watched as a gauge of consumer spending and the housing market — both of which remain under pressure.

“Overall, we continue to believe Home Depot is taking share and executing well in a difficult environment, and the company stands to benefit as housing demand recovers, although the recovery still appears some time away,” Joe Feldman, senior managing director and assistant director of research at investment firm Telsey Advisory Group, said in a Tuesday note.

Higher mortgage rates and low housing turnover have dampened home renovation demand.

Decker said Home Depot’s core customer is a homeowner who has seen their home values rise in recent years. “The main thing is just this uncertainty that’s holding them back from taking on large projects,” he said.

Home Depot’s results beat Wall Street expectations, and the company maintained its full-year guidance, including forecast sales growth of 2.5% to 4.5%.

Pro business outperforms DIY

During the quarter, Home Depot also said business from professional contractors outperformed the do-it-yourself customer — with strength in categories such as power, pipe and fittings, water heaters, fasteners and paint.

Home Depot executives previously said the business was “equally split” between the two customer cohorts.

But Home Depot in recent years has spent billions to gain more wallet share from contractors, buying wholesale distributors of building materials including SRS Distribution and GMS Inc.

More recently, SRS Distribution completed the acquisition of Peachtree Corners-based Mingledorff’s, a wholesale distributor of heating, ventilation and air conditioning equipment and supplies.

Decker said as the company adds categories like HVAC, the company can appeal more to contractors who are repairing or remodeling, “as opposed to heightened exposure to new construction.”

Home Depot has also ramped up digital tools that are aimed at simplifying complex tasks for contractors, and the company is working to expand its credit program.

“Pro represents a $700 billion market opportunity,” Decker said. “We know we have the right to win in this space as we continue developing differentiated capabilities to better serve residential pro customers.”

Home Depot seeks tariff refunds

Home Depot Chief Financial Officer Richard McPhail talked briefly about tariff refunds, expressing some optimism that they could help offset rising fuel and other cost pressures the company may face.

Last month, U.S. Customs and Border Protection launched an online tariff refund portal. The move came after the U.S. Supreme Court ruled it was illegal for President Donald Trump to impose tariffs under the International Emergency Economic Powers Act without congressional approval.

“We have filed for those tariff refunds, and while we don’t disclose the amount, and while we have received an immaterial amount to date, we have assumed that could provide a significant offset to those costs,” McPhail said.