InDEPTH | MIXED SIGNALS IN THE MARKETPLACE
Here is a snapshot of the most recent quarterly performance across major retailers selling home décor and area rugs.
THE HOME DEPOT Atlanta, GA
Outlook: Kohl’s raised FY2025 EPS guidance to $0.50–$0.80 from $0.10–$0.60, with continued emphasis on Sephora roll- out and home décor expansion. LOWE’S Mooresville, NC Quarter snapshot: Q2 2025 total sales $24.0 billion, comps +1.1-percent; net earnings $2.4 billion. Category performance: Lowe’s did not disclose a separate area rug line item. Flooring performance typically tracks with housing and seasonal activity, with management noting balanced demand from Pro and DIY customers. “ In home decor, we delivered positive comps in paint, flooring, and appliances, where we continue to build on our momentum with both positive sales dollars and unit comps this quarter along with driving sales growth in all major appliance categories, “ said Bill Boltz, Executive Vice President, Merchandising.
“ Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects, “ said Ted Decker, Chairman, President and CEO. Category performance: Home Depot groups flooring products under hard and soft flooring in merchandising. Its earnings release highlighted strength in smaller home improvement projects but did not break out area rug sales. Quarter snapshot: Q2 fiscal 2025 sales $45.3 billion, comps +1.0-percent (U.S. comps +1.4-percent); net earnings $4.6 billion. Outlook: Home Depot reaffirmed FY2025 guidance, empha- sizing continued share gains as customers pursue smaller, incremental projects. KOHL’S Menomonee Falls, WI Quarter snapshot: Q2 2025 net sales $3.35 billion, comps -4.2-percent; net income $153 million. Category performance: Kohl’s did not break out rugs, but management noted progress across categories including home décor, alongside Sephora and impulse buys. “ “We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second-quarter earnings, “ said Michael Bender, interim CEO.
Outlook: Lowe’s reiterated full-year guidance, with growth expectations tied to Pro demand and the ADG acquisition.
ROSS STORES Dublin, CA
Quarter snapshot: Q2 fiscal 2025 total sales $5.5 billion (+5-percent year-over-year), comparable-store sales + 2-percent; net income $508 million (EPS $1.56), modestly above expectations despite a $0.11 per share tariff-related headwind. Category performance: As a destination for off-price home fashions, Ross offers a rotating assortment of home textile bargains—including accent rugs—but doesn’t break out specific category results. Manage- ment flagged broad-based improvement across nearly all merchandise categories entering back-to-school. “ We are encouraged by the sequential improve- ment in sales trends relative to the first quarter… sales in May were strong…rebounding sharply in July…earnings modestly exceeded the high end of our guidance range, mainly due to lower-than-expected tariff-related costs, “ said Jim Conroy, CEO
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