We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Home Depot Sustain Comparable Sales Growth Amid Uneven Demand?
Read MoreHide Full Article
Key Takeaways
Home Depot's Q2'26 comps rose 1.7% y/y, with 13 of 16 departments posting positive growth.
HD's Pro demand and 11% digital sales growth fueled momentum, but comparable transactions declined 1%.
HD reaffirmed flat to 2% comps growth guidance for FY26 amid persistent housing market weakness.
The Home Depot, Inc. (HD - Free Report) continues to demonstrate resilience in a challenging home improvement environment, supported by broad-based category strength, professional customer demand and digital initiatives. In second-quarter fiscal 2026, comparable sales (comps) increased 1.7%, while U.S. comps rose 1.3%. Performance strengthened sequentially throughout the quarter, with companywide comps growth accelerating from 1.2% in May to 2.3% in July. Notably, 13 of its 16 merchandising departments delivered positive comps, reflecting sustained demand for smaller repair and maintenance projects.
Professional customers remained a key growth driver, posting positive comps and outperforming DIY customers. Strength across building materials, plumbing, electrical and power tools supported performance. Meanwhile, sales through digital platforms increased 11%, marking the fifth consecutive quarter of double-digit growth. Investments in faster delivery, improved product availability and interconnected shopping capabilities are enhancing customer engagement and supporting market share gains.
However, sustaining this momentum remains challenging as elevated housing affordability pressures, subdued housing turnover and consumer uncertainty continue to constrain larger discretionary renovation projects. Comparable transactions declined 1%, indicating that growth remains largely ticket-driven rather than volume-led.
Home Depot reaffirmed its fiscal 2026 comps guidance of flat to 2% growth. Continued Pro momentum, digital investments and operational improvements could support sales performance, although persistent housing market weakness may limit a stronger recovery in comps.
What Do Comps Trends Reveal About LOW & WSM?
Comps trends at Lowe’s Companies Inc. (LOW - Free Report) and Williams-Sonoma Inc. (WSM - Free Report) offer insights into evolving consumer spending patterns, home improvement demand and the impacts of strategic initiatives amid persistent housing market uncertainty.
Lowe's reported 0.2% comps growth in second-quarter fiscal 2026, marking its fifth consecutive quarter of positive comps. Strength in Pro, online and Home Services businesses supported performance, with online sales climbing 15.7%. However, softer discretionary DIY spending, unfavorable weather and cautious consumers pressured transactions. Looking ahead, management expects roughly flat comps for fiscal 2026, reflecting persistent housing market uncertainty and affordability challenges.
Williams-Sonoma delivered 6.2% comps growth in second-quarter fiscal 2026, accelerating from 4.8% in the preceding quarter. Strength across Pottery Barn, West Elm and Williams Sonoma, alongside 14.5% B2B growth, supported momentum. Product innovation, collaborations and full-price selling fueled market share gains despite housing market uncertainty. Management raised its fiscal 2026 comparable brand revenue growth outlook to 4-6.5%, signaling confidence in sustained demand and execution.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 5.6% in the past year compared with the industry’s decline of 8.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 22.41X compared with the industry’s average of 19.98X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 EPS implies year-over-year growth of 2.2% and 6.6%, respectively. The company’s EPS estimate for fiscal 2026 has moved down by a penny in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has edged down 0.3% in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Home Depot Sustain Comparable Sales Growth Amid Uneven Demand?
Key Takeaways
The Home Depot, Inc. (HD - Free Report) continues to demonstrate resilience in a challenging home improvement environment, supported by broad-based category strength, professional customer demand and digital initiatives. In second-quarter fiscal 2026, comparable sales (comps) increased 1.7%, while U.S. comps rose 1.3%. Performance strengthened sequentially throughout the quarter, with companywide comps growth accelerating from 1.2% in May to 2.3% in July. Notably, 13 of its 16 merchandising departments delivered positive comps, reflecting sustained demand for smaller repair and maintenance projects.
Professional customers remained a key growth driver, posting positive comps and outperforming DIY customers. Strength across building materials, plumbing, electrical and power tools supported performance. Meanwhile, sales through digital platforms increased 11%, marking the fifth consecutive quarter of double-digit growth. Investments in faster delivery, improved product availability and interconnected shopping capabilities are enhancing customer engagement and supporting market share gains.
However, sustaining this momentum remains challenging as elevated housing affordability pressures, subdued housing turnover and consumer uncertainty continue to constrain larger discretionary renovation projects. Comparable transactions declined 1%, indicating that growth remains largely ticket-driven rather than volume-led.
Home Depot reaffirmed its fiscal 2026 comps guidance of flat to 2% growth. Continued Pro momentum, digital investments and operational improvements could support sales performance, although persistent housing market weakness may limit a stronger recovery in comps.
What Do Comps Trends Reveal About LOW & WSM?
Comps trends at Lowe’s Companies Inc. (LOW - Free Report) and Williams-Sonoma Inc. (WSM - Free Report) offer insights into evolving consumer spending patterns, home improvement demand and the impacts of strategic initiatives amid persistent housing market uncertainty.
Lowe's reported 0.2% comps growth in second-quarter fiscal 2026, marking its fifth consecutive quarter of positive comps. Strength in Pro, online and Home Services businesses supported performance, with online sales climbing 15.7%. However, softer discretionary DIY spending, unfavorable weather and cautious consumers pressured transactions. Looking ahead, management expects roughly flat comps for fiscal 2026, reflecting persistent housing market uncertainty and affordability challenges.
Williams-Sonoma delivered 6.2% comps growth in second-quarter fiscal 2026, accelerating from 4.8% in the preceding quarter. Strength across Pottery Barn, West Elm and Williams Sonoma, alongside 14.5% B2B growth, supported momentum. Product innovation, collaborations and full-price selling fueled market share gains despite housing market uncertainty. Management raised its fiscal 2026 comparable brand revenue growth outlook to 4-6.5%, signaling confidence in sustained demand and execution.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 5.6% in the past year compared with the industry’s decline of 8.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 22.41X compared with the industry’s average of 19.98X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 EPS implies year-over-year growth of 2.2% and 6.6%, respectively. The company’s EPS estimate for fiscal 2026 has moved down by a penny in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has edged down 0.3% 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.