<div id="readability-page-1"><div id="ArticleBody-InlineImage-108305557"><div><div><p>SAN DIEGO, CALIFORNIA - MARCH 23: A Home Depot logo is displayed on a sign outside of a store on March 23, 2026 in San Diego, CA. (Photo by Kevin Carter/Getty Images)</p><p>Kevin Carter | Getty Images News | Getty Images</p></div></div></div><div><p><span id="RegularArticle-QuoteInBody-1">Home Depot<span><span id="-WatchlistDropdown"></span></span></span> said Tuesday its core homeowner shopper remains resilient in the face of higher gas prices and plummeting consumer confidence, leading the retailer to reaffirm its full-year guidance after beating fiscal first-quarter expectations. </p><p>&#34;The homeowner in a relevant sense is perhaps more protected financially than other customer cohorts and so we continue to see engagement,&#34; finance chief Richard McPhail told CNBC in an interview. </p><p>Still, in the face of rising geopolitical tensions, plummeting consumer confidence and a broken housing market, those shoppers are engaged &#34;up to a certain point,&#34; said McPhail. </p><p>&#34;They continue to tell us that they are going to defer their spend on larger projects,&#34; he said. &#34;That's consistent with what they've told us the last few years.&#34; </p><p>Here's how Home Depot did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:</p><ul><li>Earnings per share: $3.43 adjusted vs $3.41 expected</li><li>Revenue: $41.77 billion vs. $41.52 billion expected</li></ul><p>The company's reported net income for the three-month period that ended May 3 was $3.29 billion, or $3.30 per share, compared with $3.43 billion, or $3.45 per share, a year earlier. Excluding one-time items including costs related to the value of certain intangible assets, Home Depot reported adjusted earnings per share of $3.43. </p><p>Sales rose to $41.77 billion, up almost 5% from $39.86 billion a year earlier. </p><p>The company said it continues to expect fiscal 2026 sales to grow between 2.5% and 4.5%, compared to expectations of roughly 4%, according to LSEG. It's expecting adjusted earnings per share to grow as much as 4%, compared to expectations of 2.4% growth, according to LSEG. </p><p>Home Depot and the home improvement sector overall has been under pressure as it has contended with lower housing turnover, economic uncertainty and an ongoing delay in pricier projects. </p><p>Earlier this year, there was optimism that Home Depot could see a reprieve as mortgage rates started to dip, but those hopes were dashed after the conflict in the Middle East began, leading mortgage rates to spike once again. </p><p>In the meantime, Home Depot has been focused on winning over more pro shoppers, like contractors and roofers, which currently make up about 50% of its revenue. In 2024, the retailer acquired SRS Distribution, a company that sells supplies to roofing, landscaping and pool professionals, for $18.25 billion, and last year, it bought GMS, a specialty building products distributor. </p><p>Last week, SRS completed its acquisition of Mingledorff's, a wholesale distributor of HVAC equipment, parts and supplies that serves residential and commercial customers. The deal allows Home Depot to tap into a total addressable market worth around $100 billion, it said. </p><p>&#34;All of the things we're doing to build out our pro capabilities — and through the acquisitions we've made over the past several years — is to help us gain more share in the $700 billion pro market,&#34; said McPhail. &#34;We have a right to win that $700 billion, but we just don't quite have the ability to win yet.&#34; </p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

NAIL

<p>Home Depot reported a 5% sales increase, beating Wall Street expectations with earnings per share of $3.43. Despite rising gas prices and consumer confidence issues, the core homeowner shopper remains resilient. The company reaffirmed its fiscal 2026 sales growth guidance of 2.5% to 4.5%. Home Depot is focusing on expanding its pro shopper base through acquisitions, aiming to capture a larger share of the $700 billion pro market.</p>

CNBC

Home Depot says core shopper is resilient in the face of higher gas prices, sales rise 5%