Home Depot warns of tariff impact, ‘modest’ price hikes

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To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. The Home Depot remains “confident in our ability to manage through the macroeconomic environment as it stands today” and looks ahead to the remainder of 2025, CFO Richard McPhail said, as the Atlanta, Georgia-based company warned that tariffs may prompt price increases.Looking to the remainder of the year, the home improvement retailer expects that customers will remain “very healthy,” McPhail said Tuesday in response to analyst questions during the company’s second quarter earnings call. Customers — homeowners or professionals who serve them — have continued to see strong income gains over the past several years and are “sitting on tappable equity of over $11 trillion,” double the amount in 2019, McPhail said. Home improvement demand has persisted, with Home Depot taking steps to capitalize on the trend, he said.Yet top executives also warned of potential impact from tariffs implemented by the Trump administration. While it’s “super important to remember that over 50% of our products are sourced domestically and wouldn't be subject to any tariffs,” William Bastek, executive vice president and head of merchandising said, regarding some imported goods, “obviously, tariff rates are significantly higher today than they were when we spoke in May,” he said. “So, as you'd expect, there will be some modest price movement in some categories, but it won't be broad-based.”The warnings of price increases coincide with persistent challenges for the housing market. U.S. home prices slumped by 0.1% in July, marking the third consecutive month where prices declined, according to a report by RedFin. Home prices rose by 2.9% year-over-year, the lowest rate recorded in RedFin’s Home Price Index since 2012, according to a Tuesday release by the company.Home sales, meanwhile, have continued to shrink, according to data from the National Association of Realtors, continuing a trend begun in 2024, when home turnover rates fell to their lowest level in three decades, the NAR found in a January report. Economic uncertainty is also keeping homeowners and professionals from pursuing larger projects, executives said on the call.“When we talk generally…to our customers, each of our sets of consumers and pros, the number one reason for deferring the large project is general economic uncertainty,” CEO, Chairman and President Edward Decker said Tuesday in response to questions about taxes and interest rates. “That is larger than prices of projects, of labor availability, all the various things we've talked about in the past.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,392.75 +4.50 (+0.07%)Dow Futures44,902.00 +48.00 (+0.11%)Nasdaq Futures23,224.50 +4.75 (+0.02%)Russell 2000 Futures2,286.70 +6.10 (+0.27%)VIX16.60 +0.91 (+5.80%)Gold3,376.40 -5.20 (-0.15%)PortfolioSign in to access your portfolioSign inTop gainersXPEV XPeng Inc. 22.75 +2.38 (+11.68%)TLX Telix Pharmaceuticals Limited 12.09 +1.12 (+10.21%)YMM Full Truck Alliance Co. Ltd. 12.09 +1.08 (+9.81%)NIO NIO Inc. 5.54 +0.47 (+9.27%)AEG Aegon Ltd. 8.03 +0.57 (+7.64%)Top losersHSAI Hesai Group 23.06 -2.85 (-11.00%)BMNR Bitmine Immersion Technologies, Inc. 47.73 -4.33 (-8.32%)WW WW International, Inc. 31.01 -2.48 (-7.41%)STEM Stem, Inc. 15.29 -1.18 (-7.16%)CVI CVR Energy, Inc. 26.84 -2.05 (-7.10%)Most activeOPEN Opendoor Technologies Inc. 3.6000 +0.3800 (+11.80%)NIO NIO Inc. 5.54 +0.47 (+9.27%)NVDA NVIDIA Corporation 174.98 -0.42 (-0.24%)INTC Intel Corporation 23.50 -0.04 (-0.17%)PLTR Palantir Technologies Inc. 156.18 +0.17 (+0.11%)Earnings eventsTrending tickersCBRL Cracker Barrel Old Country Store, Inc. 54.80 -4.22 (-7.15%)ZM Zoom Communications Inc. 73.17 +1.01 (+1.40%)NIO NIO Inc. 5.54 +0.47 (+9.27%)WDAY Workday, Inc. 227.58 +0.09 (+0.04%)INTU Intuit Inc. 697.76 -1.39 (-0.20%)Top economic events