The news: Home Depot fell short of analysts’ top- and bottom-line expectations in Q2 for the first time since 2014.

• Adjusted earnings per share were $4.68, up from $4.67 a year earlier, but short of the $4.71 expected.
• Revenues were $45.28 billion, up 4.9% YoY, but below the $45.36 billion expected.

However, Home Depot reaffirmed its full-year outlook, guiding to growth in total sales of 2.8% and comparable sales of roughly 1%.

Our first take: Home Depot’s results are a sign of how tough the retail landscape has become—especially for home improvement players tethered to the frozen housing market.High interest rates and elevated home prices have iced the housing sector. Layer in tariff uncertainty and a shaky labor market, and consumers are growing cautious—particularly about big projects that can be delayed.

While Home Depot has leaned on its pro business to offset softer DIY demand, even that channel may face headwinds as the Trump administration’s immigration crackdown threatens to ripple through the construction labor market, where undocumented workers play an outsize role.

Even so, the retailer stood by its full-year outlook, which likely reflects the relative stability of its customer base: About 90% of its DIY shoppers are homeowners, and its pro customers typically serve that same group. In a shaky economy, that gives Home Depot more breathing room than most.

This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.

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