ts profit forecast for the year ahead.  The company expects its full-year adjusted earnings per share to decline by about 5 per cent from the same period last year, compared with its prior expectations of a decline of about 2 per cent.  In a public release, Ted Decker, Home Depot’s chair, president and CEO, stated that while underlying demand in the business remained relatively stable sequentially, the brand suffered from an expectation of increased demand that ultimately didn’t materialise in the third quarter.   “Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories,” he said. “We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand.” While the CEO’s statement was a bit pessimistic, Neil Saunders, GlobalData’s managing director, was more positive, remarking that these results don’t signal a significant concern for Home Depot, as the brand is still holding fairly steady overall.  Both Saunders and Scott Benedict, the founder and CEO of Benedict Enterprises, noted that the brand’s weakness stems mainly from external factors, rather than anything Home Depot itself has done wrong.  However, both retail experts warned that Home Depot’s Q3 results underscore the market is extreme volatility, making consistent growth almost impossible.  Competing in a struggling home-improvement market As Benedict told Inside Retail, “Home Depot’s Q3 results reflect a convergence of pressures that have been building across the home improvement sector for the better part of two years.” Benedict pointed to factors such as a softer housing market, prolonged discretionary pullbacks and the lingering effects of inflation in several categories, combining to create a tougher demand environment.  He explained that the shift from pandemic-era nesting, which fueled a surge in home-improvement projects, to a more normalised product replacement cycle has continued to suppress both ticket size and transaction frequency for major home improvement retailers. Similarly, Saunders pointed out that the number of home improvement projects undertaken by consumers declined by approximately 0.8 per cent compared to the year prior.  “Most of the decline came from bigger ticket projects, such as full remodels, where consumers remain nervous about the expense – especially as financing now involves higher interest rates,” said Saunders.  “Smaller projects, such as refreshes, fared better – but some of these things involved new furniture or decorative objects, which are not categories where Home Depot is the destination of choice.” On top of these structural headwinds, Benedict noted that the ongoing tariff fluctuations and the brand’s ongoing boycott have introduced incremental pressure for the brand. The tariffs have added cost volatility to Home Depot’s key product categories, especially tools, electrical, and building materials, which has made margin management more complex and compressed the company’s ability to deliver consistent earnings per share. Home Depot’s boycott, which started to gain traction in July 2025 after the company removed the diversity, equity and inclusion (DEI) page from its site, has been further fueled by the brand’s perceived complicity with US Immigration and Customs Enforcement (ICE) activities near its stores.  While the boycott has been difficult to quantify publicly, Benedict pointed out that it likely contributed to softer traffic in select markets and pressured certain branded categories.  Although neither factor is the sole cause, together they compound to create a more difficult retail market for Home Depot, against an already-challenged macro backdrop. Where does Home Depot go from here? Looking ahead, Benedict boiled down five major steps Home Depot will need to take to course-correct, including: Re-energizing project-based demand Benedict explained that home improvement spending often rebounds when consumers feel confident about the value of their homes. If Home Depot were to offer stronger value messaging, financing options and simplified project planning, this could help unlock deferred demand in kitchens, bathrooms, flooring and exterior refreshes. Leaning harder into Pro engagement. Versus the average do-it-yourself consumer, Benedict recommended that Home Depot focus on the “pro” shoppers as they are the brand’s most resilient customer segment. “Deepening loyalty, increasing job-site fulfilment support and expanding pro-focused services will help stabilise comps and build a more resilient revenue base.” Improving price clarity and value perception “With tariffs muddying the cost picture, clearer pricing strategies, private-brand expansion and more compelling entry-price solutions can help reinforce trust and reduce sticker shock.” Strengthening the omnichannel experience A faster fulfilment process, more seamless inventory visibility and improved product discovery (both online and in-store) can help win back convenience-driven shoppers who may have shifted trips elsewhere. Investing in category differentiation Home Depot’s ability to offer exclusive brands, project bundles, and expert-led content will remain its core advantage. Doubling down on this will potentially help insulate the business from broader macro softness. Overall, Benedict affirmed that Home Depot’s results this quarter were less about a single controversy and more about a retailer navigating a multi-factor slowdown. “The fundamentals of their model remain strong, but reigniting demand confidence and strengthening value perception will be critical heading into 2026,” he concluded.  Further reading: Ten predictions for how retail will play out in Q3 and Q4: Coresight Research