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SHOCKING STOCK SLUMP: Home Depot Faces a 1% Drop!

The home improvement giant is in hot water! Shares of Home Depot (NYSE: HD) plunged 1% Wednesday, and it’s not just a tiny blip on the radar—the stock has nosedived a staggering 6% over the past three months! What’s going on inside the hallowed halls of this retailer?

Bumpy First Quarter: Did Home Depot Fall Short?

In a dramatic first quarter of 2025, Home Depot reported a sales jump of 9.4%, raking in a whopping $39.9 billion compared to the same time last year. But hold your horses—comparable sales dropped by 0.3%! Adjusted earnings plummeted 3% year-over-year, hitting $3.56 per share! Are they losing their edge?

Struggling Through Stormy Economic Seas

Consumers are tightening their belts! Smaller home remodeling jobs and spring projects are still happening, but big renovations are taking a major hit due to soaring interest rates. Discretionary projects, like kitchen and bath upgrades that usually require financing, have seen a PLUNGE in interest! But don’t count Home Depot out just yet! They’re banking on a spring surge to revive sales in Q2!

Home Depot’s Secret Weapon: Strong Foundations!

HD believes it’s ready to withstand the economic rollercoaster! With a colossal market and a resilient consumer base, they’re confident! Declining home prices and an aging housing stock provide a glimmer of hope as they eye maintenance goldmines.

Home Depot’s Specialty Retail Solutions (SRS) is also flexing its muscles with $2.6 billion in sales last quarter! Better-than-expected growth is unfolding, and they’re claiming more turf in the Pro segment. Expect SRS to grow by mid-single digits as the year unfolds!

Supply Chain Strategies: A Game Changer?

Home Depot has a trick up its sleeve! More than 50% of its purchases are homegrown, sourced right here in the USA! They’re expanding their global supply chain, aiming for no single country outside the US to make up more than 10% of purchases next year. With no plans to hike prices amidst a shaky tariff landscape, they’re poised for opportunity!

A Roller Coaster Ahead: What’s the Future Hold?

The crystal ball says total sales could inch up by approximately 2.8% in fiscal year 2025, while comparable sales are projected to rise by about 1%—not exactly earth-shattering! And don’t hold your breath for adjusted EPS; it’s expected to decline around 2% year-over-year.

In this fiercely competitive world of home improvement, can Home Depot claw its way back to glory? Only time will tell! Stay tuned for this saga to unfold!