Home Depot Reports Sales Growth

Home Depot reported a 0.6 percent rise in same-store sales for the most recent quarter compared with the year-ago period. A 2.2 percent increase in average ticket price offset a 1.3 percent decline in customer transactions. The company said 55 percent of sales came from professional contractors and 45 percent from do-it-yourself homeowners.

Officials noted that elevated interest rates have weighed on large home projects and renovations over the past couple of years.

A 10-year Treasury yield reached its highest level since January 2025, while the 30-year Treasury yield hit its highest level in nearly 19 years. Higher bond yields have pushed up mortgage rates and home equity line of credit rates, reducing demand for both new and existing homes.

The company completed the acquisition of Mingledorff's, a wholesale distributor of heating, ventilation, and air conditioning equipment. Officials said the deal adds an extensive product portfolio and distribution network that complements an earlier acquisition of a specialty trade distribution company.

The company maintained its outlook and reported that a specialty building products unit gained market share during the quarter. Officials expect that unit to deliver mid-single-digit positive organic growth for the year. The stock rose modestly after the earnings release despite the challenging housing market.

The company holds a 2.59 percent weighting in the portfolio, with the most recent purchase recorded on November 9, 2024.