Home Depot sales dip in Q4 as retailer eyes 2026 rebound

The Home Depot (NYSE:HD) reported a 3.8% decline in fourth-quarter sales to $38.2 billion, reflecting a continued normalization in the home improvement market following several years of heightened demand.

Despite the quarterly dip, the retailer’s full-year 2025 sales rose 3.2% to a record $164.7 billion.

The company posted fourth-quarter diluted earnings per share (EPS) of $2.58, bringing total fiscal 2025 EPS to $14.23.

Demonstrating confidence in its cash flow, the board approved a 1.3% increase in the quarterly dividend to $2.33 per share, marking another year of heightened returns for shareholders.

Meanwhile, Home Depot’s footprint reached 2,359 stores by year-end, supported by a workforce of more than 470,000 associates.

The company’s balance sheet remains expansive, with total assets reported at $105.1 billion against shareholders' equity of $12.8 billion.

Following the quarter's performance, management issued a constructive outlook for fiscal 2026, signaling a return to growth.

The company expects total sales to increase between 2.5% and 4.5%, bolstered by plans to open approximately 15 new stores.

Comparable sales are projected to be flat to up 2%, suggesting a stabilization in the existing store base.

The retailer also targeted a gross margin of approximately 33.1% for the coming year.