Home Depot doesn't plan price hikes for tariffs unlike Walmart
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The Home Depot released its quarterly earnings May 20. Photo: Justin Sullivan/Getty Images)
Home Depot doesn't plan to increase prices because of tariffs, officials said during the company's quarterly earnings Tuesday.
- CEO Ted Decker said Tuesday he anticipates that 12 months from now "no single country outside of the United States will represent more than 10% of our purchases."
Why it matters: The Atlanta-based home improvement retailer is handling the impact of tariffs differently from other businesses, especially Walmart, which last week said it would need to raise some prices.
- "We don't see broad-based price increases for our customers at all going forward," Billy Bastek, Home Depot's executive vice president of merchandising, said Tuesday. "It's a great opportunity for us to take share, and it's a great opportunity for our suppliers to take share as well."
- "More than 50% of our purchases are sourced in the United States," Decker said in the company's quarterly earnings call. "Over the last several years, we have worked diligently with our vendors to further diversify our global supply chain."
Driving the news: Home Depot released its quarterly earnings Tuesday and reported sales of $39.9 billion for the first quarter of fiscal 2025, an increase of 9.4% from the first quarter of fiscal 2024.
- Comparable sales for the first quarter of fiscal 2025 decreased 0.3%, and comparable sales in the U.S. increased 0.2%.
- Home Depot's stock rose after the earnings were announced and was up 2% in premarket trading.
- "Our in-stock rates have never been better," Bastek said of the retailer's inventory. "We feel we're in a great position as it relates to the biggest part of our year coming up."
The big picture: President Trump's sweeping global tariffs, effectively the highest in nearly a century, are expected to cost the average household more than $2,300 a year, according to the Yale Budget Lab.
- Trump threatened Walmart on Saturday over its plan to raise prices in the face of tariffs, demanding it absorb the costs instead.
State of play: Home Depot's Decker was one of three CEOs who met with Trump in April and privately warned the president that tariffs would soon lead to empty shelves and higher prices.
- Walmart CEO Doug McMillon and Target CEO Brian Cornell were also in the April meeting.
What's next: Target releases its quarterly earnings on Wednesday. Target's Cornell warned in March that tariffs would cause food prices to rise.
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