By Savyata Mishra
Feb 24 (Reuters) – Home Depot topped estimates for fourth-quarter results and maintained its annual forecasts, as the home-improvement chain operator benefited from resilient demand from professional contractors and lower-cost repairs by budget-strapped customers.
Its shares were up nearly 3% in premarket trading on Tuesday.
Home Depot has leaned on professional (Pro) customers, such as contractors, builders and carpenters, whose large, ongoing jobs have helped offset the slowdown in big do‑it‑yourself remodels amid elevated borrowing costs and a weak U.S. housing market.
The company has rolled out new credit and project-planning tools that help Pros manage larger and more complex jobs, while broadening support through its outside-sales network.
“For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing,” said CEO Ted Decker.
Shares of rival Lowe’s, which reports quarterly results on Wednesday, were up 1%.
Atlanta-based Home Depot reported a 0.4% rise in same-store sales for the three months ended February 1, compared with analysts’ expectations of largely flat sales, according to data compiled by LSEG.
“In Q4, performance trends suggest consumers are prioritizing repair and upkeep over big-ticket remodel activity,” said Michael Gunther, vice president of research and market intelligence at Consumer Edge.
It earned $2.72 per share on an adjusted basis, surpassing analysts’ expectations of $2.54.
Average ticket size, or the average amount spent per transaction by a customer, increased 2.4% to $91.28 in the fourth quarter from a year earlier, even as customer transactions fell 8.5% to 366.5 million.
Home Depot maintained its fiscal year 2026 comparable sales forecast of flat to 2% jump and adjusted earnings per share to be flat to 4% higher from a year earlier.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
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