Home Depot has reported a positive sales growth, marking an end to eight consecutive quarters of declines. The company’s shares rose 4% on Tuesday, indicating a brighter outlook for consumer spending and the US housing market.
The news comes amid high interest rates, which have slowed down housing turnover and consumer financing for larger projects. However, Home Depot’s CEO Ted Decker stated that the company saw broad growth last quarter, with sales increasing in half of its merchandise categories.
The retailer’s business is closely tied to the housing market, and its results are seen as a positive sign after Walmart warned of slowing sales due to inflation and tariffs. Home Depot has also stated it will manage tariffs using its diverse supplier base, which could help mitigate the impact on its business.
Interestingly, the company was also asked about the potential impact of mass deportations of undocumented immigrants on its labor force. While there is a shortage of skilled trades workers in the US, economists and housing experts warn that such policies could drive up housing costs. Home Depot’s CEO acknowledged the shortage but expressed uncertainty over how it would be affected by any significant change in immigration policies.
Source: https://edition.cnn.com/2025/02/25/business/home-depot-stock-earnings/index.html