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The objective of SRS is to grow our share with the Pro, to accelerate sales growth, to accelerate operating profit growth and to accelerate EPS growth.
So from a sales and operating profit perspective, as you can see, it's already contributing to our company immediately. From an EPS perspective, the acquisition of SRS will be cash EPS accretive in the first 12 months of ownership as we said in March. It will be cash EPS accretive in the first 12 months of ownership adjusting for the associated noncash intangible amortization.
So let's talk about how SRS is reflected in our in our financials. Again, just as a reminder, we include 6 weeks of results in Q2 from SRS, and we will include about 7 months of SRS in our full year
SRS reasons
Transcript
2025 Q2
19 Aug 24
And to reiterate in our comps, we were minus 3.7%, minus 0.9% and then a minus 4.9%.
comps through the quarter
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2025 Q2
19 Aug 24
but those things that are components of the large project, kitchen, bath, flooring, lighting are all under pressure. And our customers tell us it's because that large project is being deferred. We're certainly not going to try to call timing.
But just to echo what Ted said, there is certainly a direct relationship between decreases in mortgage rates and the amount of activity that you at least see picking up in turnover.
specifoc areas under pressure
Transcript
2025 Q2
19 Aug 24
So just thinking about SRS, look, they have a different product mix than Home Depot, right? About 2/3 of their product is roofing and then the remaining 1/3 is in pool and landscape.
SRS carries similar margins on similar products as The Home Depot. Those products carry a lower gross margin rate than The Home Depots company's average. But their margin simply reflects a different mix than The Home Depot.
SRS -- 2/3 in roffing and 1/3 in pool/landscape
Transcript
2025 Q2
19 Aug 24
We are in a very rational environment as it relates to the home improvement sector, while there's been some pressure in the category like appliances.
appliances
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2025 Q2
19 Aug 24
PCE spending from goods back into services. And we're effectively through that transition, the relative share spend is more or less equal to where it was before the pandemic.
through the producr to services spending transition
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2025 Q2
19 Aug 24
And we see that in building materials in lumber categories that are very specifically tied to construction in a larger project. And that was really the change that we saw as the quarter progressed.
buildng materoals toed to larger projects
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2025 Q2
19 Aug 24
Comparable sales are expected to decline between negative 3% and negative 4% for the 52-week period. The high end of our range implies a consumer demand environment consistent with the first half of fiscal 2024.
While comparable sales for the company are not currently on the trajectory for the low end of the range, a negative 4% comp implies incremental pressure on consumer demand beyond what we are seeing today.
comp sales guidance downgrade
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2025 Q2
19 Aug 24
We continue to see softer engagement in larger discretionary projects where customers typically use financing to fund the project such as kitchen and bath remodels
soft kitchen/bath remodels-- see WHR
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2025 Q2
19 Aug 24
Our plumbing department posted a positive comp, while power, building materials, appliances and paint were all above the company average.
plumbing up, power/bm/app/paint above company average
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2025 Q2
19 Aug 24
oday, we have roughly 17% market share with tremendous growth potential. That is why we have been investing and executing on our strategy to create the best interconnected experience for a Pro wallet share through a differentiated set of capabilities and build new stores.
mkt share 17%
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2025 Q2
19 Aug 24
during the fourth quarter, our sales were largely in line with our expectations
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2024 Q4
28 Feb 24
Today, we are in a great position regarding our inventory levels.
Our in-stocks are the best they've been in a number of years
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2024 Q4
28 Feb 24
2023 marked the year of significant progress for our inventory management and on-shelf availability while effectively navigating a disinflationary pricing environment
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2024 Q4
28 Feb 24
Pro backlogs are lower than they were a year ago, they have remained stable and elevated relative to historical norms
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2024 Q4
28 Feb 24
We continued to see softer engagement in big-ticket discretionary categories like flooring, countertops and cabinets.
During the fourth quarter, our Pro and DIY customers performance was relatively in line with one another.
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2024 Q4
28 Feb 24
The big ticket comp transactions or those over $1,000, were down 6.9% compared to the fourth quarter of last year.
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2024 Q4
28 Feb 24
Deflation from core commodity categories negatively impacted our average ticket by 35 basis points during the fourth quarter, driven by deflation in lumber and copper wire.
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2024 Q4
28 Feb 24
we continue to see our customers trading up for new and innovative products
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2024 Q4
28 Feb 24
However, we did have some unfavorable impacts from weather in January and core commodity deflation. We saw a continuation of the trend that we've been observing throughout the year. with softness in certain big ticket discretionary type purchases.
(No comment added)
Transcript
2024 Q4
28 Feb 24