US home improvement retailer Home Depot has announced its fourth-quarter (Q4) and full-year fiscal 2025 (FY25) results, alongside a small increase in its quarterly dividend and guidance for FY26.
For the three months ended 1 February 2026, net sales totalled $38.2bn, a 3.8% decline from the corresponding period a year earlier.
Net earnings were $2.57bn, compared with $3bn in the prior-year quarter.
In Q4, comparable sales edged up 0.4% overall and 0.3% in the US. The reporting period comprised 13 weeks compared with 14 weeks in fiscal 2024.
Cost of sales fell 3.5% year-on-year to $25.73bn, resulting in gross profit of $12.46bn, down 4.4%.
Selling, general and administrative (SG&A) expenses rose 0.6% to $7.77bn.
Operating income dropped 14.4% to $3.84bn while earnings before income taxes declined 15.2% to $3.29bn.
Diluted earnings per share were $2.58, versus $3.02 a year earlier.
The additional 14th week in fiscal 2024 contributed approximately $0.30 to diluted earnings per share in both the quarter and full year.
Adjusted diluted earnings per share were $2.72, compared with $3.13 in the previous year, reflecting the same 14-week effect.
For the full fiscal year ended 1 February 2026, net sales increased 3.2% to $164.68bn from $159.51bn.
Cost of sales reached $109.81bn, up 3.4%, while gross profit grew 2.9% to $54.86bn. SG&A expenses rose 6.8% to $30.70bn.
Operating income for the year decreased 3% to $20.89bn, and earnings before income taxes fell 4.1% to $18.60bn.
Net earnings declined 4.4% to $14.15bn from $14.80bn.
Separately, the board approved a 1.3% increase in the quarterly dividend to $2.33 per share, equivalent to an annual dividend of $9.32 per share.
Home Depot chair, president and CEO Ted Decker said: “Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication.
“For the fourth quarter, our results were largely in line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year.”
For FY26, Home Depot expects total sales to grow approximately 2.5% to 4.5%, with comparable sales projected to range from flat to 2%.
The retailer plans to open around 15 new stores and anticipates a gross margin of 33.1%.
Operating margin is forecast at approximately 12.4% to 12.6%, or 12.8% to 13% on an adjusted basis.
The company also expects an effective tax rate of about 24.3%, net interest expense of roughly $2.3bn and diluted earnings per share growth ranging from flat to 4% from $14.23 in fiscal 2025.
