Home Depot reported modest price movement after initially saying it would not raise prices due to tariffs, according to a report by the Wall Street Journal. The retailer’s earnings and revenue missed estimates, potentially indicating consumers are spending less.
In its second quarter results, Home Depot generated $4.6 billion in net earnings, slightly below expectations of $4.71 billion. Revenue also fell short of projections at $45.2 billion, down from an expected $45.3 billion.
Despite lower sales, the retailer’s president and CEO described the results as “in line with our expectations.” Home Depot reaffirmed its fiscal guidance, including a 2.8% growth in sales for the year.
The company’s CFO warned that higher tariff rates could impact prices, but emphasized that these adjustments would not be broad-based. Customers are instead opting for smaller home improvement projects due to general uncertainty and increased borrowing costs.
Home Depot imports less than half of its inventory from outside the US. The retailer initially stated it would not raise prices in response to tariffs, citing that some merchandise could leave shelves due to increasing tariffs. However, this stance has led to speculation about which items might be affected.
This week, other major retailers such as Lowe’s, Target, and Walmart will also report earnings, providing insight into how businesses are coping with higher tariff rates. Foot traffic at Home Depot stores fell in July, but online sales have increased by 12% compared to the previous quarter.
Source: https://www.forbes.com/sites/zacharyfolk/2025/08/19/home-depot-warns-of-price-changes-from-tariffs-after-missing-quarterly-earnings