The Home Depot, the world's largest home improvement retailer, has reported its first quarter fiscal 2025 results, showing a 9.4% increase in sales compared to the same period in fiscal 2024. Despite this growth, comparable sales for the first quarter of fiscal 2025 decreased by 0.3%, with U.S. comparable sales increasing by 0.2%. However, foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points.
Net earnings for the first quarter of fiscal 2025 were $3.4 billion, or $3.45 per diluted share, compared with net earnings of $3.6 billion, or $3.63 per diluted share, in the same period of fiscal 2024. Adjusted diluted earnings per share for the first quarter of fiscal 2025 were $3.56, down from $3.67 in the same period of fiscal 2024.
Looking ahead, The Home Depot reaffirms its guidance for fiscal 2025, which is a 52-week year compared to fiscal 2024's 53-week year. The company expects total sales growth of approximately 2.8% and comparable sales growth of approximately 1.0% for the comparable 52-week period. Additionally, the company anticipates opening approximately 13 new stores and targeting a gross margin of approximately 33.4% and an operating margin of approximately 13.0%.
The company also expects its tax rate to be approximately 24.5% and net interest expense of approximately $2.2 billion. It forecasts a decline of approximately 3% in diluted earnings per share from $14.91 in fiscal 2024, and a 2% decline in adjusted diluted earnings per share from $15.24 in fiscal 2024. The company also plans to allocate approximately 2.5% of total sales to capital expenditures.
During the first quarter, The Home Depot operated a total of 2,350 retail stores and over 790 branches across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The company employs over 470,000 associates and is listed on the New York Stock Exchange under the symbol HD, and is included in the Dow Jones Industrial Average and Standard & Poor's 500 index. Following these announcements, the company's shares moved -0.37%, and are now trading at a price of $379.38. For the full picture, make sure to review HOME DEPOT, INC.'s 8-K report.
