Home Depot (NYSE:HD) reported stronger-than-expected fourth-quarter earnings. However, its comparable sales forecast for 2025 disappointed investors as rising interest rates impact home improvement demand.

Highlights from Earnings Report

• Net sales reached $39.70 billion, outperforming expectations of $39.13 billion.
• Adjusted EPS was $3.13, beating the estimated $3.04.
• Sales benefited from an extra week in the quarter, contributing approximately $2.5 billion.

2025 Expectations

• Forecasts suggest only a 1% growth in comparable sales, below the 1.65% predicted by analysts.
• Higher interest rates continue to dampen renovation spending.
• Potential tariffs from Trump’s policies add to inflation uncertainty.

While Home Depot’s resilient Q4 performance shines, its muted outlook suggests ongoing challenges in the home improvement sector.