Home Depot reported a 2.5% increase in Easter-adjusted comparable sales for April 2025 and indicated a strong start to May, attributing this performance to a robust consumer balance sheet, steady incomes, and aging housing stock. Despite high mortgage rates around 7% dampening some discretionary projects, Home Depot noted improved consumer confidence with recession risks declining and no demand destruction expected. The company highlighted strength in building materials, lumber, and hardware categories but observed softer engagement in larger financed projects like kitchen and bath remodels. Mega-retailers including Walmart, Amazon, Lowe's, Target, and TJX have also reported resilient consumer spending and higher full-price sell-through, positioning them well ahead of expected tariff challenges. Meanwhile, VF Corporation's shares declined sharply after it forecasted a larger-than-expected loss and disclosed it was accelerating product shipments to the U.S. to avoid tariff pauses. Ralph Lauren posted strong fiscal 2025 fourth-quarter results, with adjusted EPS of $2.27 and revenue of $1.7 billion, driven by robust consumer demand and double-digit sales growth in Europe and Asia. The brand experienced margin expansion and increased direct-to-consumer sales by 13%, supported by higher prices and lower cotton costs. Urban Outfitters also reported positive comparable sales, reflecting ongoing consumer resilience in the retail sector.
US stock futures flat. Urban Outfitters upbeat on the consumer https://t.co/giBSAHJFqP
Ralph Lauren Posts Another Strong Quarter, Bucking Luxury Slowdown https://t.co/o4ax7scWU9
Ralph Lauren Earnings Climb on Higher Prices, Lower Cotton Costs https://t.co/Fc3AxRv3v5