Home Depot, the nation’s largest home improvement retailer, has bucked a growing trend among retailers by refusing to raise prices amid mounting tariff pressures and inflationary headwinds.
In its fiscal first-quarter report released Tuesday, the company confirmed that it absorbed increased costs tied to U.S. tariffs on imported goods without passing those expenses onto customers.
While competitors like Walmart have hinted at or implemented price increases, Home Depot’s leadership said its diversified supply chain and operational efficiencies allowed it to hold firm.
“No single foreign country represents more than 10 percent of our merchandise purchases, and more than half of our goods are sourced domestically,” said Richard McPhail, Home Depot’s chief financial officer, during the earnings call.
“This diversification gives us flexibility to manage cost pressures and maintain stable pricing.”
Home Depot’s strategy appears to be paying off, with the company reporting revenue of $39.9 billion for the quarter—a 9.4 percent increase from the same period last year and ahead of Wall Street’s expectations.
Net income dipped slightly to $3.4 billion from $3.6 billion in Q1 2024, while comparable sales were down 0.3 percent overall but showed modest growth of 0.2 percent in the U.S. market.
CEO Ted Decker credited strong supplier relationships and careful inventory management for enabling Home Depot to weather the storm.
“We’re seeing continued demand for home improvement projects, especially smaller-scale and seasonal work, which supports stable customer engagement,” Decker said.
Despite the challenges of inflation and tariffs, Home Depot reaffirmed its full-year guidance. The company projects total sales growth of approximately 2.8 percent and comparable sales growth around 1 percent, while expecting a modest decline in earnings per share.
Industry analysts noted that Home Depot’s refusal to raise prices could give it a competitive edge in a consumer environment increasingly sensitive to costs.
“In times of inflation, price stability can be a powerful differentiator,” said retail analyst Jane Thompson. “It signals confidence and customer focus, which may drive loyalty in the long term.”
As the retail landscape grapples with ongoing supply chain disruptions and geopolitical uncertainty, Home Depot’s disciplined approach underscores the importance of supply chain diversification and operational resilience.
Also Read
Senate Advances Groundbreaking Crypto Bill Amid Democratic Rift
JCPenney to Close Seven Stores as Retail Landscape Continues to Shift