ATLANTA – Home Depot will not raise prices in response to newly imposed tariffs, citing supply chain efficiency and strong supplier partnerships, the company’s chief financial officer said Tuesday.
“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,” CFO Richard McPhail told CNBC.
The announcement accompanied the release of the company’s first-quarter earnings and a reaffirmed full-year sales outlook.
According to CNBC, McPhail noted that more than half of Home Depot’s merchandise is sourced within the United States, and the company has strategically reduced its reliance on imports from China. He added that by 2025, no single foreign country will account for more than 10% of its sourcing.
The retailer’s approach stands in contrast to Walmart, which announced last week that it plans to raise prices in response to the latest round of tariffs.
For the quarter ending May 4, Home Depot reported revenue of $39.86 billion, narrowly surpassing LSEG analysts’ forecast of $39.31 billion. Adjusted earnings per share came in at $3.56, slightly below the $3.60 forecast. Net income dipped to $3.43 billion from $3.60 billion in the same period last year.
Comparable sales fell 0.3%, though U.S. comparable sales increased by 0.2%. McPhail attributed sluggish February results to poor weather but said performance strengthened in March and April.
Home Depot also continues to broaden its customer base, fueled by its $18.25 billion acquisition of SRS Distribution in 2024, which expanded its reach into the professional contractor segment.
Looking ahead, the company expects total sales to grow by 2.8% in 2025, with comparable sales projected to rise about 1%, assuming current tariff reductions remain in place.
