The Atlanta-based retail giant experienced a boost during its first quarter thanks to both professional contractors and homeowners purchasing seasonal supplies for spring projects.
“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” CEO Ted Decker said Tuesday.
The real estate sector has remained stagnant as American buyers grapple with increasing expenses and broader economic worries.
Transactions for existing U.S. properties showed minimal movement in April, marking another disappointing period for real estate during what’s typically the industry’s peak season. Previously owned home transactions increased just 0.2% from the previous month to reach a seasonally adjusted annual pace of 4.02 million units, according to data released by the National Association of Realtors one week ago. Transaction volumes remained unchanged when compared to the same month last year.
America’s real estate sector has experienced a downturn since 2022, when borrowing costs started rising from record-low levels that had sparked a purchasing boom in the early 2020s. Consumers remain hesitant as fuel costs contribute to a 3.8% inflation rate, with U.S. Labor Department data from last week indicating gasoline prices have surged over 28% from the previous year.
During the quarter ending May 3, the company generated $3.29 billion in profits, equivalent to $3.30 per share. The previous year’s corresponding period saw earnings of $3.43 billion, or $3.45 per share.
After adjusting for specific factors, earnings reached $3.43 per share. This figure surpassed the $3.41 per share projection from FactSet-surveyed analysts.
Total revenue increased to $41.77 billion from the prior year’s $39.86 billion, exceeding Wall Street’s anticipated $41.59 billion.
Same-store sales, a crucial indicator of retail performance, grew 0.6%. Within the United States, comparable location sales increased 0.4%.
The number of customer visits dropped 1.3% during the quarter, while average purchase amounts rose to $92.76 from $90.71 in the same period last year.
The retailer continues to project fiscal 2026 overall sales growth between 2.5% and 4.5%, with comparable sales growth expected to range from flat to a 2% increase.
Stock prices climbed more than 1% in pre-market trading Tuesday.
