Home Depot’s revenue rises in Q1 as customers spend more tackling smaller projects

Home Depot saw an increase in revenue during the first quarter as customers spent slightly more on smaller projects. Despite challenges from tariffs affecting global trade, the company maintained its sales growth forecast of around 2.8%. Shares of the Atlanta-based company rose over 3% before the market opened on Tuesday, with revenue surpassing analyst expectations at $39.86 billion. Although same-store sales in the U.S. fell slightly, customer transactions rose by 2.1% and the average amount spent per ticket increased. Home Depot’s Chair and CEO, Ted Decker, noted that customer engagement remained strong in smaller projects and spring events. The housing market’s sluggishness has impacted home improvement retailers like Home Depot, as homeowners delay larger projects due to higher borrowing costs and inflation concerns. Existing home sales have declined, affecting the company’s performance. Home Depot reported earnings of $3.43 billion, or $3.45 per share, for the first quarter, slightly down from the previous year. Adjusted earnings were $3.56 per share, slightly below Wall Street’s expectations of $3.60 per share.