The Home Depot online sales grew in its fiscal Q1, albeit at a slower rate than its total sales growth.
Total Home Depot sales hit $39.86 billion in its fiscal Q1 2025, which ended May 4. That’s a 9.4% year-over-year increase over $36.42 billion in Q1 2024. Its gross profit also increased 8.3%, to $13.46 billion from $12.43 billion.
Total comparable sales declined slightly, down 0.3% year over year. It was the opposite in the U.S., though, where comparable sales rose 0.2%.
The Home Depot Inc. ranks No. 4 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales. Home Depot is also the top-ranked retailer in the Top 2000’s Hardware & Home Improvement category.
Home Depot response to tariffs
CEO Ted Decker told investors on Home Depot’s Q1 earnings call that it sources more than half of its purchases from the United States. The retailer has worked for years to further diversify its global supply chain, he said. And in the next year, he anticipates that no country outside of the U.S. will represent more than 10% of its purchases.
Because of its sourcing strategy, “we don’t see broad-based price increases for our customers at all going forward,” said Billy Bastek, executive vice president of merchandising, on the earnings call. “It’s a great opportunity for us to take share, and it’s a great opportunity for our suppliers to take share as well.”
“There’s items that we have that could potentially be impacted from a tariff that, candidly, we won’t have going forward if it doesn’t make sense inside the line structure,” he added. A line structure refers to the strategy a retailer uses to organize products by price, brand, size and features.
Home Depot opened three new stores in Q1, bringing its total count to 2,350. By the end of the quarter, its inventory reached a value of $25.8 billion. That’s up by about $3.3 billion from Q1 2024, largely because of Home Depot’s acquisition of SRS Distribution last year.
Home Depot online sales in Q1
In Q1, Home Depot online sales increased 8% year over year.
“We continue to invest in enhancing our interconnected experience,” Bastek told investors. “And this quarter, we continue to lean into marketing our speed of delivery that is resonating with our customers. Those customers benefiting from faster delivery are engaging more and spending more with us across our categories.”
Home Depot’s generative AI tool on its website, Magic Apron, “has seen strong customer engagement, contributing to growth in online conversion,” Bastek said.
Home Depot designed Magic Apron to help customers find the answers they need related to their home improvement projects. It can summarize product reviews or answer live questions, he added.
The retailer hosted its annual Spring Black Friday and Spring Gift Center events in Q1. And although it didn’t quantify sales numbers, Bastek said Home Depot “saw strong performance across both events.”
Also in Q1, Home Depot’s overall average order value was “essentially flat,” Bastek said. Comparable transactions decreased 0.5% in the period, he said.
Customers also traded up in Q1, he said, with big-ticket comparable transactions of $1,000 and larger growing 0.3% year over year.
“However, we continued to see softer engagement in larger discretionary projects, where customers typically used financing to fund the project, such as kitchen and bath remodels,” Bastek explained.
Comparable sales to Home Depot Pros grew in Q1, he said, outpacing the do-it-yourself (DIY) customer.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Home Depot online sales.
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