Home Depot sales edge up as investors parse uneven demand trends

Home Depot’s latest quarter showed why the chain cannot count on one clean rebound to solve store-level planning. Sales rose to $38.2 billion in fiscal fourth quarter 2025, with comparable sales up 0.4% companywide and 0.3% in the U.S., but the mix underneath those numbers remained uneven.

Ted Decker said the quarter reflected ongoing consumer uncertainty and pressure in housing. He also said regional performance varied, with the Northern and Western divisions posting positive comps, Mexico positive in local currency and Canada negative in local currency. Professional contractor demand and lower-cost repairs by budget-strapped customers helped offset weak DIY remodel activity, a split that plays out on the sales floor as uneven traffic by department and more cautious shopping baskets.

That is the operational challenge for store leaders. A category-level gain can still hide soft spots in discretionary projects, delayed remodels and customers trading down to cheaper fixes. In that environment, managers have to read the floor more closely: where traffic is building, which aisles are moving, and when special-order expectations need to be explained clearly. Home Depot’s annual report said knowledgeable associates and on-shelf availability are critical to the store experience, while faster delivery and more inventory of high-velocity items remain central to its execution.

The company said it had 19 direct fulfillment centers and has invested in faster delivery and more inventory of popular products. It also said comp sales leveraging digital platforms increased about 11% from the same quarter a year earlier, a reminder that customers are moving between stores, mobile tools and delivery options as they decide how to finish projects. For associates, that means the sale may begin at the shelf, but it may also be won or lost in how well the store handles pickup, substitutions and delivery timing.

Home Depot is also trying to reshape the business rather than wait for housing to improve on its own. The company plans to build about 80 new stores over five years and expects to keep opening 15 to 20 stores a year after that plan is completed in 2027. It also completed the acquisition of GMS through SRS Distribution in fiscal 2025, expanded its Magic Apron AI-powered home-improvement feature and launched real-time tracking for big and bulky deliveries. Those moves point to a retailer betting that Pro customers, digital tools and tighter fulfillment will matter even more if DIY demand stays choppy.

For employees on the floor, the message is less about a broad recovery than about precision. Home Depot’s sales are edging up, but the demand picture still moves aisle by aisle, market by market and customer by customer.