They won’t be raising prices.
Home Depot has decided to maintain its current pricing despite the impact of new tariffs, citing its large scale, strong supplier relationships, and diversified supply chain. The company emphasized that over half of its inventory is sourced domestically, and that it has reduced dependency on Chinese imports. By next year, no single country outside the U.S. will represent more than 10% of Home Depot’s imports. This decision contrasts with competitors like Walmart, which has signaled upcoming price increases due to higher costs.
Despite a slow housing market and rising interest rates, Home Depot reaffirmed its full-year sales forecast. Company leaders believe that keeping prices stable could help capture more market share. While some consumers are scaling back on large renovation projects, smaller purchases like paint and gardening supplies remain steady. Executives view this as an opportunity to remain competitive and retain customer loyalty amid economic uncertainty.
Home Depot’s earnings report revealed that it missed profit expectations for the first time since 2020, but exceeded revenue estimates. In the first quarter, comparable sales in the U.S. rose slightly, while total sales across the company saw a marginal decline. Customer transactions increased by just over 2%, and average spending per visit remained consistent. Seasonal sales events and improved weather conditions in March and April helped offset a weak February.
To boost its performance, Home Depot has also expanded its focus on professional customers. Its recent acquisition of SRS Distribution, a major supplier for roofing and landscaping professionals, contributed significantly to quarterly revenue growth. This move is part of a broader strategy to target more stable, professional spending during a time when DIY activity is more cautious.
Although the company acknowledges that many homeowners are delaying bigger home improvement projects, it continues to see strong engagement in smaller, seasonal upgrades. Executives remain optimistic that their core customer base—largely homeowners with higher incomes—will support steady growth. Looking ahead, Home Depot projects a 2.8% increase in overall sales for the full year, with expectations of continued modest gains despite broader market challenges.
