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Home Depot<\/a> said Tuesday its core homeowner shopper remains resilient in the face of higher gas prices and plummeting consumer confidence, leading the retailer to reaffirm its full-year guidance after beating fiscal first-quarter expectations.\u00a0<\/p>\n “The homeowner in a relevant sense is perhaps more protected financially than other customer cohorts and so we continue to see engagement,” finance chief Richard McPhail told CNBC in an interview.\u00a0<\/p>\n Still, in the face of rising geopolitical tensions, plummeting consumer confidence and a broken housing market, those shoppers are engaged “up to a certain point,” said McPhail.\u00a0<\/p>\n “They continue to tell us that they are going to defer their spend on larger projects,” he said. “That’s consistent with what they’ve told us the last few years.”\u00a0<\/p>\n Shares rose slightly in premarket trading. <\/p>\n Here’s how Home Depot did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:<\/p>\n Earnings per share: $3.43 adjusted vs $3.41 expectedRevenue: $41.77 billion vs. $41.52 billion expected<\/p>\n The company’s reported net income for the three-month period that ended May 3 was $3.29 billion, or $3.30 per share, compared with $3.43 billion, or $3.45 per share, a year earlier.\u00a0Excluding one-time items including costs related to the value of certain intangible assets, Home Depot reported adjusted earnings per share of $3.43. <\/p>\n Sales rose to $41.77 billion, up almost 5% from $39.86 billion a year earlier.\u00a0<\/p>\n The company said it continues to expect fiscal 2026 sales to grow between 2.5% and 4.5%, compared to expectations of roughly 4%, according to LSEG. It’s expecting adjusted earnings per share to grow as much as 4%, compared to expectations of 2.4% growth, according to LSEG.\u00a0<\/p>\n While Home Depot’s report beat on the top and bottom lines, that came after Wall Street estimates have fallen in recent months, lowering the bar. <\/p>\n The report suggests that pressures impacting the company continued into the quarter. Though sales were up in the midst of an M&A boom for the company, comparable sales came in lighter than expected at 0.6%. That was behind StreetAccount expectations of 0.8% and marked the third quarter in a row that figure failed to rise or fall more than 0.5%. <\/p>\n Comparable transactions fell 1.3% \u2014 the fourth straight quarter of declines \u2014 as gross margin also came in lighter than expected at 33%, lower than expectations of 33.2%, according to StreetAccount. <\/p>\n Home Depot and the home improvement sector overall has been under pressure as it has contended with lower housing turnover, economic uncertainty and an ongoing delay in pricier projects.\u00a0<\/p>\n Earlier this year, there was optimism that Home Depot could see a reprieve as mortgage rates started to dip, but those hopes were dashed after the conflict in the Middle East began, leading mortgage rates to spike once again.\u00a0<\/p>\n In the meantime, Home Depot has been focused on winning over more pro shoppers, like contractors and roofers, which currently make up about 50% of its revenue. In 2024, the retailer acquired SRS Distribution<\/a>, a company that sells supplies to roofing, landscaping and pool professionals, for $18.25 billion<\/a>, and last year, it bought GMS<\/a>, a specialty building products distributor.\u00a0<\/p>\n![\"Oppenheimer's](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/05\/108308927-17791872181779187213-46043970286-1080pnbcnews.jpg\")
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