Rowe Michael F. sold $239K of HD

Walmart (WMT) reported 3.4% Q2 comparable sales growth, excluding pharmacy items, while Home Depot (HD) saw strength among budget-conscious DIYers. Both companies noted selective consumer spending. Walmart and Target saw smaller basket sizes, indicating cautious consumer behavior. Analysts highlight trade-down demand for Walmart and DIY substitution for Home Depot, but both face broader budget pressures.

After the Supreme Court struck down Trump's tariffs, companies like Walmart, Amazon, and Apple received billions in refunds. Walmart ($2.9B) cut prices on items, Amazon ($600M) absorbed costs, and Apple ($2.2B) plans U.S. reinvestment. Target ($994M) and Home Depot ($730M) also lowered prices. Consumers unlikely to get direct refunds.

Major retailers like Walmart, Target, Home Depot, and Lowe's have received substantial tariff refunds, with Walmart and Target reporting the largest amounts. Walmart has used its $2.9 billion refund to lower prices, while Target has secured $994 million. Home Depot and Lowe's received $730 million and $80 million, respectively. The refunds come from invalidated IEEPA tariffs, with $106.6 billion paid out so far.

Home Depot (HD) reported 1.7% comp growth, reaffirming its full-year guidance, while Lowe's (LOW) cut its outlook to the low end with just 0.2% comps. HD's revenue was $47.86B, driven by Pro sales, while LOW's $25.96B revenue relied on recent acquisitions. Housing starts fell 12.4% in July, impacting both companies differently.

Four retailers (Walmart, Lowe's, Home Depot, Abercrombie & Fitch, Williams-Sonoma, Kohl's, Bath & Body Works) reported Q2 earnings beats, partly due to Supreme Court tariff refunds. Abercrombie & Fitch (ANF) reported $1.27B in sales, $4.17 EPS, with $100M from refunds. Williams-Sonoma (WSM) showed strong comp sales growth. Kohl's (KSS) and Bath & Body Works (BBWI) also beat estimates. Consumer data shows defensive spending trends.

Home Depot (HD) reported 1.7% same-store sales growth in Q2, driven by higher spending per ticket. Operating income rose 4.8% YoY. The company has raised dividends annually since 2010, offering a 2.8% yield. Challenges stem from macroeconomic factors, but the stock is seen as attractive for patient investors.