Home Depot reported a slower-than-expected third quarter as U.S. households pulled back on big renovation projects and shifted spending toward essentials. Revenue growth stalled as discretionary categories such as outdoor equipment, décor, and large home upgrades saw weaker demand. Higher interest rates and persistent inflation made homeowners more cautious, reducing the number of large-ticket purchases that usually boost Home Depot’s quarterly performance. Even with solid online traffic and steady demand from professional contractors, the shift in consumer behavior weighed on the overall results.

Management highlighted that categories like tools, hardware, and building materials held up reasonably well, suggesting that core maintenance spending remains stable. However, seasonal product lines underperformed, and shoppers appeared more selective heading into the holiday season. Although the company reaffirmed its full-year outlook, executives acknowledged that visibility remains limited as Americans continue adjusting to tighter budgets. Home Depot’s efficiency initiatives, loyalty programs, and strong pro-contractor base provided some cushion, but the quarter still reflected a broader cooling in discretionary home improvement spending.