"Sales for the second quarter were $47.9 billion, an increase of 5.7% from the same period last year. Comp sales increased 1.7% from the same period last year, and comps in the U.S. increased 1.3%. Adjusted diluted earnings per share were $4.92 in the second quarter, compared to $4.68 in the second quarter last year. Our second quarter results exceeded our expectations, and our teams did a great job executing throughout a dynamic environment."
EVP and CFO · Richard McPhail
"In fact, this month, we launched Express Delivery nationwide with delivery on tens of thousands of products in three hours or less. In addition, we've evolved our appliance delivery model to better serve direct purchases. We now stock a select assortment of appliances that can reach our customers next day in certain markets. We are seeing a sales lift in these markets and will continue to lean in to broaden these efforts."
Senior EVP · Ann-Marie Campbell
"A great example of how we're building on the momentum that we're seeing is through the evolution of Magic Apron. In addition to a website, now associates and customers can utilize this application in our aisles to navigate our stores more efficiently, find products within seconds, and ask questions about products and projects to feel more confident in their ability to complete a home improvement project. Customer feedback has been incredibly positive."
Senior EVP · Ann-Marie Campbell
"Big-ticket comp transactions, those over $1,000, were positive 2.4% compared to the second quarter of last year. We were pleased with the performance we saw in portable power and patio. However, larger discretionary projects remain under pressure. During the second quarter, pro posted positive comps and outperformed DIY. We saw strength in DIY across many spring-related categories, including live goods, mulch, soils, hardscapes, storage, patio, and grills."
EVP of Merchandising · Billy Bastek
"Turning to total company online comp sales leveraging our digital platforms increased 11% compared to the second quarter of last year. This is the fifth quarter in a row with double-digit year-over-year growth, driven by our ongoing investments across our interconnected platforms. Delivering the best interconnected experience is a key component of our strategy, and our faster delivery speeds are resonating with customers and driving greater engagement."
EVP of Merchandising · Billy Bastek
"In the second quarter, we received IEEPA tariff refunds, which reduced our cost of goods sold by $685 million. While these refunds were received in the second quarter, they are being used to offset unplanned and rising cost pressures throughout the year. In the second quarter, our gross margin was 33.7%, an increase of approximately 25 basis points from the second quarter of last year, which was primarily driven by the benefit from the IEEPA tariff refund, largely offset by incremental cost pressures related to fuel, energy, and other product input costs."
EVP and CFO · Richard McPhail
"Housing turnover, just as one point in the economy that we watch, has been at historical lows. It has never been lower as a percentage of the housing stock. Every time we have seen it hit the sort of 3% of the housing stock changing hands, over history, it has always bounced up relatively quickly. We have seen housing turnover at these low levels for four years now. I do not think that we have seen much volatility from the recent increase in rates."
EVP and CFO · Richard McPhail
"The headline here for us this quarter is that our teams took share in a difficult environment. We're confident the investments that we've made are positioning us like no one else in the market. When we look out at the broader market, all the data that we see, what we hear from other constituents in the market is that there remains tremendous pressure on our sector and on anyone connected with housing. When we look at our results with that overlay, we're confident we're taking share."
EVP and CFO · Richard McPhail
"Yeah, no. Both Canada and Mexico out-comped the company, which was fantastic. I know we called out Canada last quarter, but it was great to see the acceleration in Canada. For the half, they just had a fabulous quarter and half where they positive comp in transactions and positive comp in units, which is fantastic. Mexico has just been on this great run, and they continue to be on a great run, and we are just continuing to see just great results from that team as well."
Senior EVP · Ann-Marie Campbell
"The app was our highest growth surface on all of our digital surfaces, and that was exciting. That's ahead of the planned refresh that we told you we've got coming in the back half, which is great. Then on Magic Apron, we're getting millions of questions per month now on Magic Apron. It's continued to grow. It's been a great tool for our customers. We've had great feedback."
EVP of Customer Experience · Jordan Broggi