Home Depot Q3 Sales Rise, Guidance Tightened as Weather Affects Demand

Home Depot released its third quarter fiscal 2025 results on November 18, reporting total sales of $41.4 billion, an increase of 2.8 percent year over year that included roughly $900 million from the recently acquired GMS Inc. Net earnings for the quarter were $3.6 billion, equal to $3.62 per diluted share, and adjusted diluted earnings per share were $3.74. Comparable or same store U.S. sales rose only about 0.1 percent to 0.2 percent, underscoring a softer consumer backdrop.

Company executives told investors the quarter fell short of expectations primarily because an anticipated seasonal lift did not appear and because an unusually mild storm season reduced demand in storm related categories. In response Home Depot tightened its fiscal 2025 guidance. The company now expects comparable sales for the 52 week period to be slightly positive, and it lowered its adjusted diluted earnings per share forecast while providing updated margin, capital expenditure and EPS targets in the earnings release.

The results and the guidance update come as the retailer continues to invest in its network and its professional customer base. The release noted the company employs more than 470,000 associates and highlighted ongoing investments including new store openings and the contribution from GMS. Management reiterated a strategic emphasis on growing market share and serving professional customers even as it navigates consumer uncertainty and pressure in the housing market, and the company thanked associates for their efforts during a challenging quarter.

For hourly and store level employees the numbers translate into several operational realities. A softer seasonal cycle and less demand in storm related categories can mean reduced overtime opportunities and lighter traffic in certain departments. The acquisition driven sales lift from GMS may shift merchandising and stocking priorities as product assortments are integrated, and store openings and investment programs may sustain hiring in targeted markets. The tightened guidance also signals executives will be watching margins and capital spending closely, a focus that can shape staffing, scheduling and store level initiatives going into next year.

Analysts will be watching whether Home Depot can regain momentum with professionals and offset headwinds from consumer caution and housing pressures. For associates the company message was one of appreciation and continued emphasis on execution, even as corporate leaders adjust financial expectations for the rest of fiscal 2025.