From Yahoo Finance: 2025-05-20 06:13:00

Home Depot plans to keep prices stable despite potential product shortages due to U.S. tariffs. CEO Billy Bastek assured analysts that prices will not change, but some items may disappear. The company sources less than half of its goods from outside North America, reducing exposure to China.

Despite potential tariffs, Home Depot reported first-quarter sales exceeding estimates at $39.86 billion. However, its adjusted profit per share of $3.56 fell short of expectations at $3.60. Operating margin decreased to 12.9% from 13.9% in the year-ago period, potentially impacting margins.

The home improvement retailer faces challenges due to economic uncertainty and budget constraints affecting larger renovation projects. Despite favorable economic conditions, macroeconomic fears are discouraging big projects. Home Depot’s acquisition of SRS Distribution has boosted its professional customer base, with analysts predicting market share growth.

As consumer-facing companies feel the pressure of U.S. tariffs, Home Depot’s commitment to avoiding price hikes could increase market share. The company’s overall comparable sales dipped by 0.3% in the quarter, affected by weak February weather. Despite this, Home Depot maintains its fiscal 2025 sales growth forecast of 2.8% and a 2% decline in adjusted profit per share from last year.

Read more: Home Depot to keep prices steady but says tariffs may make some items unavailable