It looks like Home Depot’s aisles are a bit quieter these days. The home improvement giant just dropped its Q2 earnings, and the results are a bit of a hodgepodge—kind of like that half-finished bathroom project you’ve been putting off. 

Turns out, you’re not the only one. Consumers are hitting pause on home renovations, waiting to see if Jerome Powell will finally give us that sweet, sweet rate cut in September.

Home Depot reported revenue of $43.79 billion, which sounds impressive until you realize it wasn’t quite the number Wall Street was hoping for. Adjusted earnings per share came in at $4.67, beating the $4.52 estimates, so there’s that. But before you start celebrating, here’s the catch: same-store sales fell by 2.2%. It’s like Home Depot’s sales are stuck in that one toxic relationship my buddy Mike can’t seem to quit—things aren’t great, everyone knows it’s not working, but they just keep dragging it out anyway.

So, what’s got everyone suddenly scared to pick up a paintbrush? UBS analyst Michael Lasser saw this coming from a mile away. With interest rates likely to be lowered in a few months, folks are slamming the brakes on big-ticket projects like that dream kitchen makeover or finally fixing up the deck. I mean, why would anyone want to lock in a loan at today’s rates when a better deal could be just around the corner? It’s like holding out for Black Friday—but instead of a shiny new 70-inch TV, you’re waiting for a bargain on that roof that’s been leaking since last winter.

Home Depot’s CEO, Ted Decker, weighed in with a line that sounds like it was pulled straight out of a Shakespearean drama: “Higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly.” You can almost hear his secretary typing it out with a quill pen.

But let’s not get too negative. Home Depot is still the leader in the home improvement world, and they’re playing the long game. The company recently completed its $18.25 billion acquisition of SRS Distribution, which specializes in roofing, landscaping, and pool contracting. This move is expected to pump an extra $6.4 billion into their sales for fiscal 2024.

However, don’t expect the turnaround to be immediate. As Joe Feldman from Telsey Advisory Group pointed out, even if the Fed decides to throw us a bone and lower rates in September, “it doesn't mean sales pick up the next day.” It’s going to take time for consumers to feel confident enough to start those big projects again.

For now, Home Depot’s hanging in there, but the next few quarters are going to be pivotal. If interest rates finally drop, we could see a surge of pent-up demand hitting the market. But until then, it’s a waiting game—for both Home Depot and the DIY crowd biding their time, tools in hand, ready to jump back in when the timing’s right.

Stock.News does not have positions in companies mentioned.