Home Depot Beats Q2 Estimates Amid CEO Medical Leave

Home Depot reported second-quarter fiscal results that exceeded Wall Street expectations, with revenue rising 5.7% to $47.86 billion and adjusted earnings per share reaching $4.92. The company achieved its largest sales gain since 2022, with comparable sales increasing 1.7%. This growth was driven by a 2.8% increase in average ticket size and demand for smaller home improvement projects, which offset a 1% decline in customer traffic.

Despite the beat, the company reaffirmed its full-year guidance, projecting total sales growth between 2.5% and 4.5%. CFO Richard McPhail attributed the cautious outlook to "frozen housing market conditions" caused by high mortgage rates and low housing turnover. To mitigate unplanned fuel and energy costs, the retailer utilized $685 million from tariff refunds received during the quarter. The company is currently expanding its professional contractor business and launching a nationwide three-hour express delivery service.

The financial results follow the announcement that CEO Ted Decker is taking a temporary medical leave of absence for a few months. During his absence, the company split executive responsibilities between Ann-Marie Campbell, who is managing day-to-day operations, and Richard McPhail, who is overseeing financial management and the professional contractor business.