The Home Depot reported its 2025 first quarter fiscal results on May 20 for its February-April quarter, showing a healthy year-over-year increase in overall sales, while comparable figures saw a modest decline.

The company posted total 1Q sales of $39.9 billion, up 9.4% year-over-year, while comparable sales fell 0.3%. In the U.S., comparable sales increased 0.2%.

By month, comparable year-over-year sales were -3.3% in February, +1.3% in March and +1.8% in April.

1Q gross margin was 33.8%, down 35 basis points year-over-year, reflecting a change in product mix as a result of the company’s $18 billion acquisition of SRS Distribution completed in June of 2024.

Net profit for 1Q was $3.4 billion, down from the $3.6 billion of a year earlier.

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The company reaffirmed its 2025 guidance that forecasts total 2025 sales growth of about 2.8% and comparable sales growth of 1.0%. The Home Depot expects full-year gross margin of about 33.4% and operating margin of 13.0%.

The company also expects to have opened 13 new stores by the end of 2025. HD’s retail store count at the end of 1Q was 2,350, with 2,028 of those in the U.S.

Other notes from Home Depot’s 1Q:

• Inflation from core commodity categories positive impacted average ticket by approximately 30 basis points, driven by inflation in lumber and copper
• Foreign exchange rates negatively impacted total company comps by approximately 70 bps
• Comp average ticket was essentially flat year-over-year and comp transactions were down 0.5%
• Big ticket comp transactions (>$1,000) were up 0.3% year-over-year
• 16 merchandising departments posted positive comps during 1Q, including appliances, plumbing, indoor garden, electrical, outdoor garden and building materials
• Comp sales leveraging digital platforms increased approximately 8% year-over-year

DIY vs. Pro Comps

The company said it was pleased with the 1Q performance it saw in building materials, lumber and hardware, but continued to see softer engagement in larger discretionary projects where customers typically use financing to fund the project, such as kitchen and bathroom remodels.

Home Depot didn’t share specific figures on Pro and DIY performance, but said that while overall comp sales were down 0.3%, Pro comp sales were positive and outpaced DIY.

“We saw strength across many Pro heavy categories like gypsum, decking, concrete and siding,” Merchandising lead Billy Bastik said on the call.

SRS Distribution Performance Update

Commenting on the performance of SRS Distribution, the company said that SRS exceeded expectations during 1Q, achieving $2.6 billion in sales.

“If you just look at their growth by the three verticals they operate in, we exceeded our expectation,” CEO Ted Decker said. “We believe they’re taking share in each of those three verticals. So, couldn’t be happier with SRS. They are operating further a playbook of organic growth made up of comp branch growth and opening new branches as well as tuck-in acquisitions, and that is active in all three verticals.”

Decker added that SRS is helping Home Depot’s Pro ecosystem with a current focus on its trade credit program, which now has over 90,000 accounts.

Chief Financial Officer Richard McVale added that the company expects SRS to meet HD’s expectations of mid-single digit growth for the year.

MDM Podcast: A Home Depot-SRS Megadeal Breakdown

Holding Prices Steady Amid Tariffs

In an earnings call with analysts, the company said it doesn’t plan to enact large-scale prices increases in the wake of President Trump’s tariffs policy, though certain individual products may see a price increase and others products may be removed from shelves if extra import costs make them not worth it.

“We don’t see broad-based price increases for our customers at all going forward,” HD Chief Merchandising Officer Billy Bastek said during the call. “There’s items that we have that could potentially be impacted from a tariff that, candidly, we won’t have going forward. There’ll be ome things that don’t make sense that just end up going away.”

Bastek also emphasized the company’s sourcing strength and diversification, noting that more than half of HD’s purchases are sourced domestically in the U.S. and that the company anticipates no single country will represent 10% of its purchases a year from now.