Home Depot posted a decrease in fiscal fourth-quarter profit as economic uncertainty, high interest rates, and a stagnant housing market continue to weigh on home renovation activity.

The chief financial officer stated, "We continue to experience pressure from consumer uncertainty and a frozen housing market. Our homeowner customers remain among the healthiest consumer segments, but they are also telling us that uncertainty is affecting their willingness to spend on their homes."

Home Depot raised prices on some products last year to offset tariff impacts. The chief financial officer indicated that these price increases did affect demand, but the company currently has no plans for further hikes.

The home improvement retailer noted that uncertain economic conditions, including falling home prices and an unstable job market, have led homeowners to postpone remodeling projects. High interest rates have particularly discouraged discretionary upgrades that homeowners typically finance, while the stagnant housing market has limited renovation activity that usually accompanies home turnover.

The chief financial officer said that the home improvement market has strong long-term fundamentals, given the high age of U.S. housing stock and elevated home equity levels. However, he pointed out that it remains unclear when these factors will actually drive a recovery in renovation activity. "There have been some mild signs of improvement in home prices and mortgage rates, but the timing is difficult to predict," he added.

The company reported a fourth-quarter net profit of $2.57 billion, or $2.58 per share, down from $3 billion, or $3.02 per share, in the same period a year earlier.

Adjusted earnings per share were $2.72. Analysts surveyed by FactSet had expected $2.53 per share.

Sales fell 3.8% to $38.2 billion, but exceeded Wall Street forecasts of $38.09 billion.

Comparable store sales increased by 0.4%.

The company reaffirmed its fiscal 2026 outlook, which calls for comparable sales growth to be flat to up 2%, and adjusted earnings per share growth to be flat to up 4%.