Home Depot Inc. reported modest second-quarter gains and reaffirmed its fiscal 2025 outlook while moving forward with a transformative acquisition that would significantly expand its reach in professional building materials distribution.
For the quarter ending July 28, sales rose 4.9% to $45.3 billion, up from $43.2 billion a year earlier. Net income remained flat at $4.55 billion, compared with $4.56 billion last year.
For the first half of fiscal 2025, Home Depot reported sales of $85.1 billion, up 7% from $79.6 billion in the prior-year period. Net income declined 2.2% to $7.98 billion.
Despite softer profit trends, Home Depot reaffirmed its full-year forecast, projecting total sales growth of about 2.8%, comparable sales growth of 1%, and 13 new store openings. At quarter’s end, Home Depot operated 2,353 stores and more than 800 distribution branches across North America, employing over 470,000 people.
“Our teams continue to execute at a high level, and we are seeing sustained demand for smaller home improvement projects,” said Ted Decker, chair, president, and CEO of Home Depot. “We are growing market share and remain focused on serving our customers efficiently.”
Decker also spotlighted the company’s pending acquisition of GMS Inc., announced in June, which will be completed through Home Depot’s specialty distribution arm, SRS Distribution Inc.
If finalized, the acquisition would create a new powerhouse in professional building materials distribution. GMS’s more than 300 branches in the U.S. and Canada would be integrated with SRS’s national network, giving Home Depot control of over 1,200 locations and a fleet of 8,000 trucks serving contractors across North America.
“This acquisition adds a highly complementary vertical to our SRS distribution business, bringing differentiated product categories and customer relationships,” Decker said on the Q2 earnings call. “It broadens our footprint and enhances our ability to serve pros working on complex projects. With GMS, we’ll be able to offer a deeper assortment of interior building products, more fulfillment options, and stronger partnerships with contractors.”
Decker added that while the broader economic backdrop remains volatile, the company is confident in its ability to integrate GMS and maintain growth. “Despite the uncertainty in the market, we are confident we can effectively navigate this environment,” he said.
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