Home Depot shares declined during Monday's trading session, closing 1.3% lower at $380.30 while major U.S. equity indices advanced. The home improvement retailer's underperformance comes ahead of several significant market events this week.
Investors are focused on upcoming economic indicators, including the Labor Department's January employment report scheduled for Wednesday and the Consumer Price Index data due Friday. These releases are expected to influence interest rate expectations, which directly impact housing activity and related stocks.
Home Depot's fourth-quarter 2025 earnings, scheduled for release on February 24 at 9:00 a.m. ET, will provide crucial insight into consumer spending patterns. Analysts will be watching for updates on sales trends among both professional contractors and do-it-yourself customers, as well as indications of improving store traffic and transaction values ahead of the critical spring season.
The retailer has previously provided cautious guidance, projecting fiscal 2026 comparable sales growth between flat and 2%, with adjusted earnings per share expected to range from unchanged to a 4% increase. Management has identified housing market conditions as a key variable affecting performance.
Rival Lowe's also experienced pressure during the session, declining approximately 0.9%. Meanwhile, broader market measures showed strength, with the SPDR S&P 500 ETF advancing about 0.6% and the Invesco QQQ Trust gaining close to 0.9%.
The coming weeks will test whether home improvement spending can rebound amid evolving economic conditions. Market participants will be monitoring whether consumers resume larger renovation projects that typically drive higher sales and margins for home improvement retailers.
