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Home Depot's Rising Average Ticket Offsets Softer Customer Visits
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Key Takeaways
Home Depot's average ticket rose 2.8% y/y in Q2'26, offsetting a 1% decline in comparable transactions.
HD's big-ticket transactions grew 2.4%, while Pro demand and higher-value purchases supported sales growth.
HD faces softer customer visits and housing affordability pressures, limiting larger discretionary projects.
The Home Depot, Inc. (HD - Free Report) is witnessing improving sales momentum, supported by higher average customer spending, resilient demand for smaller home improvement projects and strength across its professional customer business. However, declining transaction volumes highlight persistent consumer caution, as elevated housing costs and economic uncertainty continue to weigh on discretionary remodeling activity.
In second-quarter fiscal 2026, Home Depot's comparable average ticket increased 2.8% year over year, offsetting a 1% decline in comparable transactions. Total comparable sales rose 1.7%, while U.S. comparable sales advanced 1.3%. Higher spending was driven by favorable product mix, selective pricing and increased purchases of higher-value merchandise. Categories such as refrigeration, portable power and patio contributed to ticket growth, alongside customers trading up within certain product categories.
Encouragingly, big-ticket transactions exceeding $1,000 increased 2.4% y/y in second-quarter fiscal 2026, reflecting sustained demand for select higher-value products. However, larger discretionary renovation projects remain under pressure. The company's Pro business outperformed DIY, benefiting from demand across building materials, tools and other contractor-focused categories. Meanwhile, continued engagement in repair and maintenance projects supported broad-based merchandising performance.
Despite improving sales productivity, declining customer visits suggest that underlying demand has yet to recover fully. Management remains cautious about housing turnover and affordability pressures, which continue to limit larger project activity. While higher average spending is helping sustain comparable sales growth, a meaningful recovery in transaction volumes will be crucial for Home Depot to achieve more balanced and sustainable long-term growth.
Are LOW & WSM Seeing Similar Average Ticket Trends?
Like Home Depot, industry peers Lowe's Companies, Inc. (LOW - Free Report) and Williams-Sonoma, Inc. (WSM - Free Report) are navigating evolving consumer spending patterns, housing-market uncertainty and shifting demand for home improvement and furnishings products, making their average ticket trends an important indicator of customer purchasing behavior, sales momentum and underlying business strength.
Lowe's witnessed higher customer spending but softer traffic in second-quarter fiscal 2026. Comparable average ticket increased 2.3% year over year, benefiting from modest price inflation and strength in its Pro business. However, comparable transactions declined 2.1%, reflecting weakness in discretionary DIY spending and weather-sensitive seasonal categories. While Pro, online and home services provided support, cautious consumers and housing-market pressures continued to constrain overall demand.
Williams-Sonoma is witnessing strong customer engagement, supported by product innovation, compelling assortments and higher full-price selling. Second-quarter fiscal 2026 comparable brand revenues increased 6.2%, with e-commerce and retail comps advancing 6.5% and 5.5%, respectively. Strength across furniture and non-furniture categories, alongside successful collaborations, supported sales momentum. Although management did not disclose average ticket or transaction trends, improving conversion and customer engagement indicate healthy underlying demand.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 15.1% in the past three months compared with the industry’s decline of 13.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 18.78X compared with the industry’s average of 17.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 EPS implies year-over-year growth of 2.3% and 6.8%, respectively. The company’s EPS estimate for fiscal 2026 has moved up 0.1% in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has been unchanged in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Home Depot's Rising Average Ticket Offsets Softer Customer Visits
Key Takeaways
The Home Depot, Inc. (HD - Free Report) is witnessing improving sales momentum, supported by higher average customer spending, resilient demand for smaller home improvement projects and strength across its professional customer business. However, declining transaction volumes highlight persistent consumer caution, as elevated housing costs and economic uncertainty continue to weigh on discretionary remodeling activity.
In second-quarter fiscal 2026, Home Depot's comparable average ticket increased 2.8% year over year, offsetting a 1% decline in comparable transactions. Total comparable sales rose 1.7%, while U.S. comparable sales advanced 1.3%. Higher spending was driven by favorable product mix, selective pricing and increased purchases of higher-value merchandise. Categories such as refrigeration, portable power and patio contributed to ticket growth, alongside customers trading up within certain product categories.
Encouragingly, big-ticket transactions exceeding $1,000 increased 2.4% y/y in second-quarter fiscal 2026, reflecting sustained demand for select higher-value products. However, larger discretionary renovation projects remain under pressure. The company's Pro business outperformed DIY, benefiting from demand across building materials, tools and other contractor-focused categories. Meanwhile, continued engagement in repair and maintenance projects supported broad-based merchandising performance.
Despite improving sales productivity, declining customer visits suggest that underlying demand has yet to recover fully. Management remains cautious about housing turnover and affordability pressures, which continue to limit larger project activity. While higher average spending is helping sustain comparable sales growth, a meaningful recovery in transaction volumes will be crucial for Home Depot to achieve more balanced and sustainable long-term growth.
Are LOW & WSM Seeing Similar Average Ticket Trends?
Like Home Depot, industry peers Lowe's Companies, Inc. (LOW - Free Report) and Williams-Sonoma, Inc. (WSM - Free Report) are navigating evolving consumer spending patterns, housing-market uncertainty and shifting demand for home improvement and furnishings products, making their average ticket trends an important indicator of customer purchasing behavior, sales momentum and underlying business strength.
Lowe's witnessed higher customer spending but softer traffic in second-quarter fiscal 2026. Comparable average ticket increased 2.3% year over year, benefiting from modest price inflation and strength in its Pro business. However, comparable transactions declined 2.1%, reflecting weakness in discretionary DIY spending and weather-sensitive seasonal categories. While Pro, online and home services provided support, cautious consumers and housing-market pressures continued to constrain overall demand.
Williams-Sonoma is witnessing strong customer engagement, supported by product innovation, compelling assortments and higher full-price selling. Second-quarter fiscal 2026 comparable brand revenues increased 6.2%, with e-commerce and retail comps advancing 6.5% and 5.5%, respectively. Strength across furniture and non-furniture categories, alongside successful collaborations, supported sales momentum. Although management did not disclose average ticket or transaction trends, improving conversion and customer engagement indicate healthy underlying demand.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 15.1% in the past three months compared with the industry’s decline of 13.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 18.78X compared with the industry’s average of 17.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 EPS implies year-over-year growth of 2.3% and 6.8%, respectively. The company’s EPS estimate for fiscal 2026 has moved up 0.1% in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has been unchanged in the past 30 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.