(Corrects spelling in paragraph 10)
(Reuters) -Home Depot missed analysts’ estimates for second-quarter sales and profit on Tuesday, as price-conscious homeowners reined in spending on large-scale renovations and focused on do-it-yourself projects.
The top U.S. home-improvement chain’s results kick off a busy earnings week for big-box retailers, including Walmart and Target, offering early clues on U.S. consumer spending and how these companies are navigating the turbulence of President Donald Trump’s tariff policies.
Home Depot and Lowe’s are grappling with soft demand as higher mortgage rates discourage home purchases. As homeowners opt to stay put longer, spending has shifted toward smaller repair projects and maintenance, dampening sales of big-ticket renovation products.
For instance, demand for kitchen and bath remodels has weakened, as those projects typically rely on financing that has become pricier.
“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,” CEO Ted Decker said.
Visits to the Atlanta-based retailer were down 2.2% in the second quarter, after a 3.9% drop in the first quarter, according to foot traffic data from firm Placer.ai.
Home Depot maintained its fiscal 2025 sales and profit targets. It expects overall sales growth of about 2.8% and adjusted per-share profit to decline 2% from last year.
The company posted net sales of $45.28 billion for the quarter ended August 3, compared to analysts’ estimate of $45.36 billion, according to data compiled by LSEG.
Its adjusted profit came in at $4.68 per share, below expectations of $4.71.
Shares of Home Depot were down marginally in premarket trading. Rival Lowe’s, which is set to report quarterly results on Wednesday, also dipped.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
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