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Home Depot Cuts Earnings Forecast Amidst Stagnant Housing Market

11/19/2025

34 5 Full Breakdown

Summary

Home Depot Cuts Earnings

The Home Depot now expects a 5% decline in adjusted earnings for the year, down from a prior 2% estimate.
Revenue rose 2.8% to $41.35 billion.
Comparable sales rose only 0.2% and fell short of expectations.
The Home Depot Chief Executive Officer Ted Decker attributed the downturn to a stagnant housing market, high mortgage rates, and a lack of storm-related demand.
The stock dropped nearly 4% after the announcement.

History

Historical Context

The U.S. housing market experienced a dramatic bubble from 1997 to 2006, with home prices soaring 124%. However, by 2007, rising foreclosures and defaults triggered a collapse, leading to a 30% drop in home prices by 2008. The Federal Reserve's response included slashing interest rates to near zero, a move that echoes today's stagnation in the housing market and high mortgage rates.

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Home Depot Cuts Earnings

The Home Depot now expects a 5% decline in adjusted earnings for the year, down from a prior 2% estimate.
Revenue rose 2.8% to $41.35 billion.
Comparable sales rose only 0.2% and fell short of expectations.
The Home Depot Chief Executive Officer Ted Decker attributed the downturn to a stagnant housing market, high mortgage rates, and a lack of storm-related demand.
The stock dropped nearly 4% after the announcement.

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