Home Depot CEO flags a disconcerting lack of faith in the American economy: ‘Our customers are telling us that they’re not investing’

Fortune

by Jacqueline Munis

February 25, 2026

AI-Generated Deep Dive Summary

Home Depot CEO Ted Decker revealed that the company is grappling with a sluggish housing market as customers postpone home improvement projects due to reduced investment in large-scale initiatives. Despite exceeding analyst expectations in the fourth quarter, Decker highlighted macroeconomic challenges such as high home prices and low housing turnover, which have led to decreased demand for home-related products. Net earnings fell by 13% year-over-year, underscoring the broader economic uncertainty affecting consumer sentiment. The housing market's stagnation is driven by factors like affordability issues and reduced consumer confidence, with nearly 20% of new homes facing price cuts in early 2025. Decker emphasized that this decline reflects broader economic concerns about jobs, price levels, and overall affordability. Home Depot is responding by considering lower prices to remain competitive, though the company's sales growth projections for fiscal year 2025 are modest at 2.5% to 4.5%. Additionally, Decker announced plans to lay off 800 employees and implement mandatory five-day work weeks starting in April, signaling cost-cutting measures amid economic uncertainty. The CEO also noted that tax refunds may not significantly boost sales, as consumers are likely to use the money for debt repayment rather than spending. This situation highlights broader business implications beyond Home Depot, illustrating how consumer confidence impacts various industries reliant on home-related spending. The company's challenges reflect a wider economic slowdown affecting multiple sectors, underscoring the importance of addressing housing affordability and economic sentiment to stabilize the market.

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Originally published on Fortune on 2/25/2026