Home Depot misses earnings due to tariffs, but maintains full-year guidance

From Yahoo Finance: 2025-05-20 10:29:00

Home Depot investors saw mixed earnings as consumers reconsider renovation projects due to tariffs. Revenue rose 9.4% to $39.86B, missing EPS expectations at $3.56. Same-store sales fell 0.3%. CEO cites softer demand in larger projects. Stock down 0.6%, but full-year guidance reiterated. Tariff uncertainty remains a concern with changing consumer sentiment.

Home Depot plans to work with suppliers and diversify sourcing to avoid raising prices due to tariffs. Rival Lowe’s has higher exposure to Chinese goods. Slow housing market affects both retailers, with Moody’s downgrade impacting Treasury yields. Home Depot maintains guidance for sales growth and expects Q2 to be a crucial period.

Analysts believe Home Depot’s digital prowess and pro customer base position it well for long-term success. Company sees opportunity in the $250B pro customer market. CEO remains optimistic due to strong customer base with high income levels. Stock market recovery and job growth also support Home Depot’s outlook.



Read more at Yahoo Finance: Home Depot misses earnings, announces no price hikes as it navigates Trump’s tariffs