Home Depot beats sales estimates as contractor demand steadies business

Home Depot edged past quarterly sales estimates as contractor demand helped cushion a soft U.S. housing market. Same-store sales rose 0.4% in the fourth quarter, and shares were up about 3% in afternoon trading after quarterly earnings also topped analysts’ estimates.

For store teams, the result put a number on the value of Pro business. Contractors still need consistent product availability, quick answers, will-call handling, special orders, Pro services, and fast issue resolution even when homeowners delay bigger discretionary projects. Reuters also reported in 2022 that higher prices and demand from builders lifted Home Depot’s sales, showing how often the pro side has carried weight when housing weakens.

The backdrop had been much harsher a year earlier. On Feb. 20, 2024, Home Depot expected 2024 comparable sales to decline about 1%, while analysts expected a 0.06% rise, according to LSEG data. By Nov. 12, 2024, the company had raised its annual same-store sales forecast, a sign the business had started to stabilize before the latest quarter.

On the floor, that mix rewards associates who can solve a jobsite problem instead of just pointing to an aisle. A contractor may need an exact substitute, a load calculation, a project estimate, or a recommendation that balances price and speed, especially in lumber, plumbing, electrical, flooring, paint, and hardware. The associate who can recommend a complete project basket and keep the order moving can protect the sale and strengthen the relationship that brings the customer back.

For managers, the numbers made staffing and replenishment a financial issue, not just an operating one. Larger baskets, faster repeat traffic, and more urgent order management mean a pro-focused day can look very different from a standard consumer rush. In a weak housing market, the stores that can answer trade-grade questions and execute cleanly still have the best shot at keeping sales steady.