Home Depot Cuts Profit Forecast Amid Weak DIY Demand

BENGALURU, November 18, 2025 – Home Depot (HD.N) on Tuesday lowered its full-year profit forecast, citing sluggish demand for big-ticket renovations and do-it-yourself (DIY) projects, as economic uncertainty driven by tariffs continues to weigh on U.S. consumers.

CEO Ted Decker highlighted that ongoing consumer uncertainty and pressure in the housing market are disproportionately affecting demand for home improvement products. “We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand,” Decker said.

Quarterly Sales Beat Expectations

Despite the profit downgrade, Home Depot posted net sales of $41.35 billion for the third quarter ended November 2, a 2.8% year-on-year increase, surpassing analysts’ average estimate of $41.10 billion. The company attributed the better-than-expected performance to steady demand from professional builders and contractors.

The company now expects annual adjusted earnings per share (EPS) to decline 5%, down from its previous projection of a 2% drop year-on-year.

Shares of Home Depot fell about 2% in premarket trading to $351.54, adding to an 8% decline so far this year.

Industry Context

Home Depot’s results kick off a week of earnings reports from major U.S. retailers, including Walmart (WMT.N) and Target (TGT.N), as investors closely monitor consumer spending trends ahead of the holiday season amid tariff-driven cost pressures.

Smaller competitor Lowe’s is expected to report quarterly earnings on Wednesday, providing further insight into the home-improvement sector.

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Key Takeaways

• Home Depot cuts full-year profit forecast due to weaker consumer demand and housing pressures.
• Q3 sales rose 2.8% to $41.35 billion, beating expectations.
• Adjusted EPS now expected to fall 5% versus prior 2% decline forecast.
• Shares slipped 2% in premarket trading, down 8% for the year.
• Retailers including Walmart, Target, and Lowe’s are under scrutiny for holiday spending trends.