Story perspectives

Home Depot Projects Modest Growth Amid Weak Housing Market

12/10/2025

Summary

Story summary

The Home Depot's preliminary guidance for 2026 indicates flat to 2% growth in comparable sales, below analyst expectations.
The Home Depot expects total sales growth of 2.5% to 4.5% and adjusted earnings per share growth of 0% to 4%.
High interest rates and a weak housing market dampen consumer spending on large projects.
The Home Depot's "market recovery case" envisions 4% to 5% growth if housing activity rebounds.

History

Historical Context

The Great Recession, which began in December 2007 and lasted until June 2009, was triggered by the collapse of the U.S. housing bubble and the subsequent subprime mortgage crisis. Home prices fell by approximately 30%, leading to widespread foreclosures and a significant decline in consumer spending. The ongoing economic challenges today, including high interest rates, echo the long-term impacts of this crisis on the housing market and retail sectors.

1 of 2

Story summary

The Home Depot's preliminary guidance for 2026 indicates flat to 2% growth in comparable sales, below analyst expectations.
The Home Depot expects total sales growth of 2.5% to 4.5% and adjusted earnings per share growth of 0% to 4%.
High interest rates and a weak housing market dampen consumer spending on large projects.
The Home Depot's "market recovery case" envisions 4% to 5% growth if housing activity rebounds.

1 / 2