Home Depot reported a strong start to 2025, with total sales in the first quarter reaching $39.9 billion, up 9.4% from the same period last year. The improvement was driven by its growing business with professional contractors and trade distributors, a group the company refers to as “Pros.”
While the number of individual transactions was slightly down, contractor and distributor activity remained healthy. These Pro customers, who typically take on large-scale residential and commercial building projects, spent more than regular DIY shoppers. Home Depot said that sales to Pros grew faster than sales to DIY customers in the quarter.
Key product areas tied to contractors—including gypsum, decking, siding, concrete, and building materials like lumber and hardware—saw strong demand. Meanwhile, larger home remodels, such as kitchen and bathroom renovations, were softer due to high interest rates, which are making financed projects more expensive for homeowners.
“The Pro customer continues to outperform,” said Ted Decker, CEO of Home Depot. “As they take on smaller and mid-sized projects, we’re focused on being their first call by expanding services and credit programs tailored to their needs.”
A major part of this growth comes from Home Depot’s acquisition of SRS Distribution, a company that specializes in building products for professionals. That acquisition is helping the retailer expand credit offerings and streamline ordering and delivery for contractors.
Home Depot is also deepening partnerships with suppliers. A new exclusive deal with BEHR gives the company sole rights to sell KILZ-branded primers in U.S. stores, which is expected to drive more Pro customer traffic in the coming quarters.
Digital sales rose about 8% year-over-year, and Home Depot highlighted strong adoption of its new online assistant, Magic Apron, a generative AI tool that helps shoppers—both homeowners and contractors—get instant answers on products and projects.
While earnings per share dipped slightly from last year, Home Depot executives said they’re on track with full-year expectations. They emphasized that sales growth continues despite headwinds like February’s poor weather and international currency shifts, especially in Canada.
Contractors, however, are showing resilience.
“Pro customers remain engaged and are spending more per visit,” said Billy Bastek, head of merchandising. “While big remodels are on pause, Pros are busy with regular maintenance and outdoor improvements.”
Analysts say the strategy to build out contractor-focused services is paying off.
“Home Depot’s pivot to support contractors more aggressively is a smart long-term play,” said retail analyst Michael Lasser of UBS. “It’s helping them offset weaker consumer demand and setting them up to grab share as the home improvement market recovers.”
Looking ahead, Home Depot reaffirmed its 2025 outlook, expecting modest overall sales growth led by Pro customer expansion. The company plans to keep investing in supply chain upgrades, associate training, and digital tools to support both contractors and everyday shoppers.
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