Home Depot reported higher revenue in its fiscal second quarter, signaling continued growth even as consumers remain cautious about major renovation spending.

The home improvement retailer posted sales of $45.3 billion for the quarter ended August 3, a 4.9 per cent increase from the same period last year. Comparable sales rose 1 per cent overall and 1.4 per cent in the US. Net earnings for the second quarter of fiscal 2025 were $4.6 billion. 

Persistent high interest rates and economic uncertainty continued to weigh on consumer spending for large-scale home improvements. Instead, customers focused on smaller, more manageable DIY projects, a trend that helped lift overall transaction values even as in-store traffic declined.

“Our second quarter results were in line with our expectations,” said Ted Decker, chair, president and CEO.

“The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects.” 

At the end of the second quarter, the company operated a total of 2353 retail stores and more than 800 branches across all 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, 10 Canadian provinces and Mexico.

Retail analyst Neil Saunders, MD of GlobalData, called Home Depot’s latest earnings “a good set of numbers,” crediting the company for steering effectively through a cooling home improvement market.

“Yes, there were some modest misses, but this is more about the external macro environment than Home Depot,” Saunders wrote. 

Saunders noted that while year-over-year comparisons continue to benefit from the recent acquisition of SRS Distribution, that effect is beginning to normalize. Still, he pointed to a promising signal in the latest results: Positive comparable sales.