Key takeaways:
- Home Depot Chair, President and CEO Ted Decker is taking a temporary medical leave of absence, with the company expecting his return within a few months.
- Senior EVP Ann-Marie Campbell will oversee day-to-day operations, while CFO Richard McPhail will manage financial oversight and Pro subsidiaries during Decker’s absence.
- The leadership transition comes as Home Depot navigates a mixed financial picture, including Q1 2026 sales of $41.8 billion but a 4.2% decline in net income.
Home Depot CEO Ted Decker will take a temporary medical leave of absence, prompting the company’s board of directors to name two veteran executives to manage the company’s operations in his place.
The world’s largest home improvement retailer said in a press release that its board selected Senior EVP Ann-Marie Campbell and EVP and CFO Richard McPhail to share oversight responsibilities during Decker’s leave. Campbell will handle day-to-day operations, while McPhail will oversee financial management and the company’s Pro subsidiaries. Independent Lead Director Greg Brenneman will chair the board throughout the transition.
Home Depot did not disclose details about the nature of Decker’s medical condition. The company said it expects him to return within the next few months.
“The Home Depot has the best management team in retail. Both Ann-Marie and Richard are strong, seasoned executives who have worked together for more than 20 years,” Brenneman said in a statement. “We are confident in Ann-Marie’s and Richard’s ability to lead the company during this time, and we look forward to Ted’s return.”
The Business Context: A Mixed Quarter
Home Depot posted Q1 2026 sales of $41.8 billion, a 4.8% year-over-year increase, but net income fell 4.2% to $3.3 billion, weighed down in part by high fuel costs tied to the war in Iran.
Comparable sales rose 0.6% overall and 0.4% in the U.S. Transactions declined 1.3% as shoppers pulled back on large discretionary projects, choosing smaller maintenance tasks instead. Nine of 16 merchandising departments posted positive comparable sales, with strength in storage, power, plumbing, paint and kitchens.
“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” Decker said on the Q1 earnings call in May. “Our customer seems to be in reasonably good shape.”
The company’s gross margin for the quarter came in at 33%, down roughly 75 basis points from Q1 2025, a shift executives attributed largely to the mix impact from recent acquisitions, including SRS Distribution and HVAC distributor Mingledorff’s. Professional contractor sales continued to outpace do-it-yourself sales.
Digital sales grew more than 10% compared to Q1 2025, the fourth consecutive quarter of double-digit online comparable sales growth.
Home Depot reaffirmed its fiscal 2026 guidance, projecting total sales growth of between 2.5% and 4.5% and comparable sales ranging from flat to 2% growth. The company plans to open approximately 15 new retail stores and between 40 and 50 new SRS locations.
It’s scheduled to report second-quarter results Aug. 18.
