Home Depot doesn’t plan to raise prices despite tariffs

Despite ongoing tariffs impacting the industry, The Home Depot announced it does not plan to raise prices, maintaining a stable pricing strategy. In its first-quarter report, the retailer showed a 9.4% rise in sales year-over-year to $39.9 billion, although comparable sales declined slightly by 0.3%, with U.S. comps increasing by 0.2%. Operating income grew modestly by 1.1% to $5.1 billion, but net income dropped 4.6% to $3.4 billion. Home Depot’s leadership expressed confidence that they can navigate tariff pressures without resorting to price hikes, emphasizing their diversified sourcing strategy, with over half of purchases made domestically and a plan to keep outside sources below 10% of total procurement. 

This approach contrasts with other retailers like Walmart, which have indicated they may need to increase prices if tariffs persist. The company also faces challenges from a sluggish housing market, with home sales down 3.1% in Q1, limiting opportunities for larger projects. CEO Ted Decker noted that while customers have focused on smaller projects so far, there is optimism for increased engagement in bigger projects once macroeconomic confidence improves and homeowners tap into rising home equity. Home Depot reaffirmed its annual outlook, projecting 2.8% total sales growth, 1% comparable sales growth, and plans to open 13 new stores during the year. 

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Home Depot doesn’t plan to raise prices despite tariffs | Retail Dive