Executing Well in a Sluggish Environment

研报英文原文证据摘录

Executing Well in a Sluggish Environment

er of +DD% Y/Y growth. Big-ticket (>$1,000) comps of 52-Week High / Low US$426.75 / US$296.88

Shares Out (mil) 996.0 +0.8% y/y decelerated slightly vs. prior quarters, with mgmt. noting strength in portable

Market Cap. (mil) US$298,610.8

power and patio, but ongoing weakness in big-ticket discretionary projects. And DIY saw Avg Daily Vol (000) 4,189

strength across Spring categories including live goods, outdoor power equipment, patio, Net Cash Per Share US$(52.12)

and grills. Pro comp was positive Y/Y and outperformed DIY (consistent with Q4). Debt to Total Capital 79.4%

Div (ann) US$9.32

• QTD Color. While the last two weeks of April were impacted by unfavorable weather, Div Yield 3.11%

sales growth looks to have bounced back in May, with mgmt. highlighting QTD trends as Fiscal Year End Jan

consistent with performance in Feb, Mar, and early-April. In the first few weeks of May, Price Performance - 1 Year

Spring selling demand seems off to a solid start, with strong customer engagement and

the largest selling weeks in Q2 still ahead. USD 440

• 2H Dynamics. Following a largely as expected Q1, full-year guidance was reiterated, 400

calling for comp growth of ~flat to +2% y/y. Comp improvement in 2H is expected to be 380

driven by a return to normal storm activity (with hurricane headwinds fading after 1H 360

and hurricane tailwinds picking up in 2H). Additionally, as it relates to tariff refunds, while 340

HD has not realized a material amount to date, the refunds could provide a nice offset / 320

upside to what is currently embedded in the guide. 300

Continued on next page... 280

May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION Source: Bloomberg