Home Depot Holds Prices Steady Despite Tariffs

Home Depot announced it will not raise prices in response to new tariffs, diverging from competitors like Walmart, which have warned of price hikes. CFO Richard McPhail explained that the company’s scale, diversified supply chain, and strong supplier relationships help maintain price stability, with over half of its products made in the U.S. and no single foreign source set to exceed 10% of purchases by next year. In the first quarter of 2025, Home Depot reported $39.86 billion in revenue, surpassing expectations, although global comparable sales fell by 0.3% and U.S. comparable sales rose 0.2%. The company reaffirmed its full-year guidance with projections of 2.8% overall sales growth and 1% comparable sales growth. The announcement was well received by the market, as Home Depot’s pricing stance could help ease inflation concerns. However, analysts warn that continued supplier cost increases or extended tariffs in key categories may challenge the company's pricing strategy.