Home Depot Sales Accelerate as Average Ticket Gains Offset Traffic
Net sales rose 5.7% to $47.9 billion in the second quarter of fiscal 2026.
Home Depot (HD) saw a recovery in sales momentum during the second quarter of fiscal 2026, with net sales rising 5.7% to $47.9 billion. This marked an acceleration from the first quarter, where sales grew 4.8% to $41.8 billion.
Comparable sales increased 1.7%, with U.S. comparable sales rising 1.3%. The results indicate a strengthening trend from the first quarter, when comparable sales grew 0.6% and U.S. comparable sales increased 0.4%.
The growth in sales was driven by higher spending per visit rather than increased foot traffic. Comparable average ticket grew 2.8% year over year, an increase from the 1.4% growth seen in the same period of fiscal 2025. This gain in ticket size offset a decline in comparable customer transactions, which fell 1.0% year over year. The drop in transactions was more pronounced than the 0.4% decline recorded during the same period in fiscal 2025.
Net earnings for the quarter rose 4.7% to $4.8 billion, up from $4.6 billion in the second quarter of fiscal 2025. Adjusted diluted earnings per share increased 5.1% to $4.92, compared to $4.68 in the prior-year period.
Profitability margins remained largely flat. GAAP operating margin was 14.3%, down from 14.5% in the same period of fiscal 2025. Adjusted operating margin saw a similar slight compression, falling to 14.7% from 14.8%.
The home improvement retailer expanded its physical footprint to 2,364 retail stores and more than 1,340 SRS locations by the end of the second quarter. This followed a first-quarter count of 2,361 retail stores and over 1,280 SRS locations.
Home Depot reaffirmed its full-year fiscal 2026 guidance, projecting total sales growth between 2.5% and 4.5% and comparable sales growth between flat and 2.0%.