Home Depot has seen a significant decrease in discretionary spending, with consumers spending less on essential improvements and remodeling projects. The retailer reported $164.7 billion in sales at the close of FY2025, up 3.2% from 2024, according to a recent SEC filing. Despite this, appliance sales have been dropping for the past three years, making up only 8.5% of the company’s total net sales in 2025, down from 8.8% in 2024, and 9.1% in 2023. Home Depot CEO Ted Decker attributed this decrease to consumer uncertainty, inflation concerns, and larger housing market. The company's annual spend on improvements and maintenance is expected to decline even more in 2026.