⚠ Lighting Down 12% in Two YearsLow threat

Home Depot (HD) — threat to the moat

Home Depot's lighting and flooring sales have fallen for two years, in the categories most exposed to both housing and specialist rivals.

Home Depot's décor departments are shrinking. Lighting sold $4,549 million in fiscal 2023 and $4,006 million in fiscal 2025; Flooring fell from $8,703 million to $8,232 million1. The Décor class as a whole went from $52,750 million to $51,679 million2.

Décor departments ($M)4,549Lighting FY20234,006Lighting FY20258,703Flooring FY20238,232Flooring FY2025Home Depot Form 10-K fiscal 2025, net sales by department
Two décor lines in retreat.

These are the categories most tied to remodelling a home a customer has just bought, and the 10-K says historically low levels of housing turnover have reduced demand for projects associated with buying and selling a home3.

They are also the categories where specialist design stores and online retailers compete hardest; the 10-K lists specialty design stores, showrooms and home décor retailers among its rivals4.

Not every décor line is falling. Kitchen & Blinds sold $7,982 million in fiscal 2025 against $7,999 million two years earlier, and Bath $6,495 million against $6,580 million5. The declines are concentrated in lighting and flooring, the lines most exposed to specialist and online rivals.

The sign to watch is the Décor class in fiscal 2026. A third year of decline while Building Materials and Hardlines grow would say the loss is to competitors, not just to the housing cycle.

References
  1. ReportedLighting sold $4,549 million in fiscal 2023 and $4,006 million in fiscal 2025; Flooring fell from $8,703 million to $8,232 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  2. ReportedThe Décor class as a whole went from $52,750 million to $51,679 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  3. ReportedThese are the categories most tied to remodelling a home a customer has just bought, and the 10-K says historically low levels of housing turnover have reduced demand for projects associated with buying and selling a home.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1A risk factors and Item 7A market risk: housing, interest rates, commodities and shrink. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  4. ReportedThey are also the categories where specialist design stores and online retailers compete hardest; the 10-K lists specialty design stores, showrooms and home décor retailers among its rivals.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business: competition, online and the interconnected experience. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  5. ReportedKitchen & Blinds sold $7,982 million in fiscal 2025 against $7,999 million two years earlier, and Bath $6,495 million against $6,580 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
Sources
Generated September 26, 2026