Overview

• Home Depot is set to report its first-quarter earnings on Tuesday, followed by Lowe’s on Wednesday, with both retailers expected to show weaker comparable-store sales.
• April sales data revealed a 2% year-over-year decline in spending at building and garden supply stores, with Lowe’s sales down nearly 3% and Home Depot up just 0.7%.
• Tariff policies announced and then paused by President Trump in April have disrupted supply chains, raised costs, and added uncertainty for retailers and consumers alike.
• Home improvement spending, a key indicator of consumer confidence and housing market activity, has been constrained by high interest rates and economic pressures.
• The U.S. economy contracted by 0.3% in Q1 2025, the first decline since 2022, signaling broader challenges tied to trade tensions and inflation.