Home Depot is scheduled to announce fiscal second-quarter earnings Tuesday morning, with Wall Street anticipating $4.71 per share in earnings and $45.36 billion in revenue. The home improvement retailer continues navigating a sluggish housing market characterized by high borrowing costs and reduced consumer appetite for major renovation projects.

CEO Ted Decker has noted a shift toward smaller projects like painting and landscaping, as homeowners hesitate to undertake large-scale renovations requiring financing. This trend has persisted for approximately two years, prompting Home Depot to expand its focus beyond DIY customers to professional contractors through strategic acquisitions.

The company completed its $18.25 billion purchase of SRS Distribution last year and announced a $4.3 billion acquisition of specialty building products distributor GMS in June. These moves aim to diversify revenue streams amid challenging housing market conditions and tariff uncertainties affecting retail pricing strategies.

Unlike some competitors, Home Depot has maintained stable pricing despite tariff pressures, with CFO Richard McPhail confirming the company’s intention to absorb costs rather than pass them to consumers. The retailer has also worked to diversify its supply chain, aiming to ensure no single country outside the U.S. accounts for more than 10% of purchases by May 2026.

Home Depot’s full-year guidance projects 2.8% total sales growth and approximately 1% comparable sales increase, based on assumptions of maintained tariff rates. However, recent tariff policy changes and ongoing U.S.-China negotiations introduce additional variables that could impact future performance. Investors will watch for updated guidance reflecting these evolving market conditions.

Source: CNBC.