Home Depot reaffirms 2026 outlook as high fuel costs and economic uncertainty push consumers toward smaller home-improvement projects.
Home Depot’s CFO Richard McPhail stated consumers are prioritizing smaller do-it-yourself projects like painting over larger renovations due to affordability pressures and gas prices above $4.50. The company reaffirmed its 2026 outlook despite economic uncertainty.
First-quarter same-store sales grew 0.6%, missing Wall Street’s 0.9% estimate, while average ticket size rose 2.2% and transactions fell 1.3%. Categories tied to big projects, such as lumber and flooring, saw continued deferrals.
Home Depot shares dropped 2% in early trading, dragging down rival Lowe’s ahead of its earnings report Wednesday.