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CNN
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Home Depot is experiencing growth once again.

The leading home improvement retailer in the United States reported on Tuesday that same-store sales, which reflect those open for at least a year, rose by 0.8% in the last quarter, ending a streak of eight consecutive quarters of sales declines. The company also expressed optimism for 2025, projecting a 1% increase in sales for its established locations.

During early trading on Tuesday, Home Depot’s stock (HD) surged approximately 4%.

This uptick is a positive indicator of consumer confidence in home expenditures and larger purchases. As a key player in the US housing sector, Home Depot’s performance is often seen as a barometer of the broader economy.

“The resurgence of US comparable sales after an eight-quarter decline is a significant achievement for Home Depot,” remarked Neil Saunders, an analyst at GlobalData Retail.

Home Depot’s operations are heavily influenced by the housing market, which has been hampered by high interest rates affecting property transactions and customer financing for substantial projects.

In a CNBC interview, Richard McPhail, Home Depot’s finance chief, stated that “the housing market is still constrained by mortgage rates.” However, he noted that the company observed widespread growth in the last quarter, with sales increasing across nearly half of its product categories.

Nonetheless, Home Depot indicated that it is facing challenges related to large-scale remodeling projects, reflecting consumer strain due to elevated interest rates.

The company’s positive performance comes on the heels of a recent warning from Walmart, the largest retailer in the nation, which indicated that 2025 could present challenges. Walmart projected a slowdown in sales amidst rising concerns regarding inflation and tariffs, which contributed to a significant drop in the Dow Jones Industrial Average last week.

During an analyst call on Tuesday, Home Depot emphasized its ability to manage tariffs through its extensive supplier network.

Recently, President Donald Trump introduced a 10% tariff on imports from China and 25% tariffs on all steel and aluminum imports. Plans to impose tariffs on imports from Mexico and Canada are slated for implementation in March, alongside potential “reciprocal tariffs.”

Additionally, Home Depot addressed inquiries regarding immigration policies. The Trump administration has committed to extensive deportations of undocumented immigrants.

The company pointed out a shortage of skilled trade workers in the United States, expressing uncertainty about how mass deportations might exacerbate this issue. Economists and housing specialists contend that such actions could drive up housing costs.

“We’ve consistently highlighted the ongoing shortage of skilled tradespeople in this country,” stated Home Depot CEO Ted Decker during the call. “We estimate there is a deficit of approximately 400,000 skilled trades workers, and it is uncertain how that figure might change with any significant immigration policy alterations.”