Home Depot said Tuesday it will not raise prices in response to higher tariffs. The home improvement giant reaffirmed its full-year sales forecast and emphasized its ability to absorb cost pressures.
The decision sets Home Depot apart from competitors like Walmart, which recently announced plans to increase prices to offset new tariff costs. Home Depot pointed to its scale, supplier relationships, and long-term supply chain diversification as key factors enabling stable pricing.
More than half of Home Depot’s merchandise is sourced domestically, and no single country outside the U.S. will account for more than 10% of its imports by next year, the company said. That diversification, particularly a reduction in goods sourced from China, has helped insulate Home Depot from volatility in global trade policy.
The pricing strategy arrives as the company navigates a challenging home improvement landscape. Despite a modest 2.8% year-over-year revenue increase to \$39.86 billion in the fiscal first quarter, comparable sales dipped 0.3% overall, while U.S. comparable sales edged up just 0.2%.
Home Depot’s decision to hold prices steady comes amid muted demand for large-scale renovation projects due to high interest and mortgage rates. Customers have instead focused on smaller, seasonal updates such as yardwork and home maintenance.
The company’s acquisition of SRS Distribution contributed significantly to growth, accounting for \$2.6 billion in additional revenue. Transactions were up 2.1% compared to last year, though average spending per visit remained flat.
Source: CNBC