Home Depot is sticking by its sales forecast for the year, despite the looming threat of tariffs. In an interview with CNBC, Chief Financial Officer Richard McPhail assured that the retail giant has no plans to raise prices due to tariffs. He attributed this decision to Home Depot’s scale, strong supplier partnerships, and ongoing efforts to drive productivity within the business.
More than half of Home Depot’s products are sourced from the U.S., with McPhail noting that the company has been working to diversify its imports over the years. This includes reducing purchases from China, with the goal of no single country outside of the U.S. accounting for more than 10% of the company’s imports by next year. This strategy puts Home Depot at odds with Walmart, which announced plans to increase prices in response to tariffs.
Despite a challenging housing market that has led to stagnant sales, Home Depot remains optimistic about its pricing strategy. McPhail sees the current situation as an opportunity for both the company and its suppliers to gain market share. While the company missed Wall Street’s earnings expectations for the first quarter, it exceeded sales estimates.
The retail landscape may be tough, but Home Depot is banking on its peak sales season to drive growth. With consumers putting off major renovation projects due to economic uncertainty, the company is focusing on engaging with home professionals and catering to a more affluent customer base. As it navigates through a changing market, Home Depot is confident in its ability to weather the storm and come out stronger on the other side.
