$HD

The Federal Reserve raised interest rates to 3.75%-4%, the first hike in three years, with unanimous FOMC support. Most members expect one more hike this year, with no cuts until 2028. Higher rates may negatively impact housing and home improvement stocks, as mortgage applications fell 19% year-over-year. Fed Chair Kevin Warsh emphasized inflation concerns, noting it remains elevated. Some stocks, like Rocket Companies and Home Depot, may benefit if rates drop and housing activity increases.

Home Depot (HD) reported a 25 bps gross margin increase in Q2 2026, aided by $730M in tariff refunds. However, rising fuel and energy costs may offset these benefits. Management expects a full-year gross margin of 33.1%. Lowe's (LOW) and Floor & Decor (FND) also face tariff pressures, with mixed Q2 margin results. HD shares are down 26.3% year-over-year, trading at a forward P/E of 19.87X.

Home Depot reported strong professional sales and delivery capabilities, with 65% of parcel shipments delivered same or next day, and 55% of big-and-bulky products within two days. The company maintained full-year guidance, emphasizing everyday low pricing and expanding its share in the $700 billion professional market. AI is being used to improve customer tools and internal processes, with plans to invest in productivity improvements and return to a 2x debt-to-EBITDA ratio by mid-2027. Accordin

RH, Floor & Decor, Lowe's, Home Depot, and Williams-Sonoma reported Q2 earnings. RH revenue grew 2.6% YoY, beating estimates. Floor & Decor revenue rose 3% YoY, outperforming expectations. Lowe's revenue increased 8.3% YoY but missed EPS and revenue guidance. Home Depot revenue grew 5.7% YoY, beating estimates. Williams-Sonoma revenue rose 6.7% YoY, surpassing expectations. Shares of these companies have declined since earnings reports.

The Home Depot México is investing nearly MX$500 million to build a new store in Lerma, State of Mexico, expanding its retail footprint and adding about 100 jobs. This project is part of a broader strategy to reach 160 stores by 2030, increase Mexican sourcing, and integrate domestic suppliers into its North American supply chain. The company aims to source 100% of its products from Mexican suppliers by 2028, according to MBN.

Lowe's (LOW) is deemed safer for income investors than Home Depot (HD) due to a higher free cash flow yield (6.93% vs. 4.11%) and better dividend coverage. HD reported 1.7% comp sales growth, but free cash flow shrank 22%. LOW's dividend raises signal longer growth runway. Both face headwinds from low housing turnover.

Home Depot's SVP-Finance, CAO & Controller Kimberly Scardino sold 675 shares on 2026-09-10, retaining 8,189 shares. The sale occurred at $305.95 per share, with the company's market cap at $308.03 billion. Over the past year, Scardino has sold 675 shares and bought none, consistent with broader insider selling trends at Home Depot.

Scardino Kimberly R (SVP-Finance, CAO & Controller) sold 675 shares of HOME DEPOT, INC. (HD) at $305.95 ($0.21M total) on 2026-09-10.

Home Depot (HD) and Lowe's (LOW) raised dividends despite housing market challenges, with HD yielding 1.44% and LOW 2.37%. Cintas (CTAS) increased its dividend by 16%, trading at a premium. Chubb (CB) reported strong underwriting income and record investment income, while Emerson (EMR) saw automation backlog growth. All companies have raised dividends consistently.

Walmart (WMT) expects $2.9B in tariff refunds, using them to lower prices, while Home Depot (HD) received $730M, applying $685M to reduce costs. Lowe's (LOW) plans to use its refund for shareholder returns. Walmart's CFO noted a 1.6% gross profit boost, and Home Depot's CFO reported a 0.3% margin increase.