Home Depot Raises Prices Amid Trump Tariffs, Reports Modest Sales Rise

Home Depot has raised its price target amid strong sales performance and positive momentum, with Jefferies increasing their target to $474 and maintaining a Buy rating. Despite steady earnings and a 5% rise in Q2 sales, the company announced modest price hikes on select products due to increased tariffs under President Donald Trump's trade policies, affecting only limited categories rather than broad-based increases. CFO Richard McPhail highlighted that tariff rates on imported goods have risen significantly, prompting these targeted price adjustments, while Home Depot continues efforts to diversify its supply chain to reduce dependency on any single foreign country. Consumer behavior has shifted, with customers deferring larger, loan-financed home-improvement projects due to economic uncertainty and high interest rates, though smaller cash-funded projects remain steady, supported by a wealthier, predominantly homeowner customer base. Despite these headwinds, Home Depot's management remains confident in achieving their 2025 sales goals, reflecting resilience amid tariff pressures and economic challenges.