Pending Home Sales Drop to 2nd Lowest on Record, Plunge to Record Low in the West, to Near-Record Low in the South

Home Depot's sales increased during the second quarter as homeowners turned to smaller projects during the summer, while the U.S. housing market remained in a slump. The company's revenue reached $47.86 billion, surpassing the expected $47.24 billion. Worldwide, sales at stores open for at least a year grew by 1.7%, and in the U.S., comparable store sales rose 1.3%.

CFO Richard McPhail noted that customers engaged in a variety of smaller projects. Customer transactions fell by 1%, but shoppers spent an average of $92.50 per transaction, up from $90.01 the previous year. Neil Saunders, managing director of GlobalData, commented on the positive trend, saying that the number of smaller projects increased by 1.5% compared to the previous year.

However, bigger-ticket projects declined by 2.1%. The rising costs of financing, especially for home equity loans, are hindering larger projects. Despite the challenges, Home Depot maintained its sales growth guidance for fiscal 2026, between 2.5% and 4.5%, and comparable sales will either remain flat or increase by 2%.