Home Depot reports slowing demand amid growing job concerns

Home Depot reported a 3.8 per cent sales decline in the quarter to Feb. 1, 2026, and said customer concerns about jobs, inflation and financing are keeping many from starting home projects, with the company expecting subdued demand through 2026.

Home Depot reported weaker demand for some merchandise as customers delay home building and renovation projects. Company executives told investors that concerns about the job market, inflation and higher financing costs are reducing spending. The retailer said sales fell 3.8 per cent in the quarter ending Feb. 1, 2026, and it expects these pressures to continue through 2026. Key points: - Home Depot described demand for some categories as "significantly reduced." - Sales declined 3.8 per cent in the three months to Feb. 1, 2026; the company noted the prior year included an extra week of sales. - CFO Richard McPhail said housing turnover has stayed at historically low levels since 2023, which has reduced project-related purchases. - Home Depot told investors it expects comparable sales for fiscal 2026 to be flat to about two per cent as the company sees ongoing consumer uncertainty. Summary: The company reported that consumer caution tied to the jobs outlook and higher borrowing costs has already weighed on sales and is expected to keep demand subdued through 2026. Undetermined at this time.