Home Depot (NYSE:HD) reported an unexpected rise in fourth-quarter comparable sales, signaling resilient U.S. demand even amid limited storm activity and an uncertain operating environment.
The home-improvement retailer said same-store sales increased 0.4% during the period, outperforming Bloomberg consensus expectations that had called for a 0.36% decline.
In the United States, comparable sales edged up 0.3%, contrasting with forecasts for a 0.54% drop.
Adjusted earnings per share reached $2.72 for the three months ended February 1, exceeding analyst expectations of $2.55.
Chief executive officer Ted Decker said the performance was “largely in-line” with the company’s internal forecasts, noting that results were partly influenced by the absence of severe weather during the third quarter. Home Depot and competitors such as Lowe’s often benefit from increased demand for repair and rebuilding supplies following storms.
Decker also pointed to “ongoing consumer uncertainty” and continued “pressure” in the broader housing market. High home prices and subdued hiring trends have contributed to uneven housing demand in the United States, despite some easing in interest and mortgage rates.
His remarks echoed earlier comments from chief financial officer Richard McPhail, who said during a December investor day that consumer caution linked to cost-of-living pressures is expected to persist into this year. McPhail also warned there has not been “a catalyst or an inflection in housing activity.”
Home Depot reaffirmed its previously issued outlook, expecting comparable sales growth in fiscal 2026 to range from flat to 2%. Adjusted earnings per share are still projected to be flat to up 4% for the year.
Shares of the Atlanta-based retailer moved higher in U.S. premarket trading on Tuesday.