Home Depot, the largest home improvement retailer in the US, has hinted that some prices may rise soon because of increased tariffs on imported goods.
This marks a shift from earlier statements when the company said it wouldn't raise prices despite tariffs.
The announcement came as Home Depot reported slightly lower earnings and sales than analysts expected, signaling that customers might be spending less on big home projects.
In its latest quarterly report, Home Depot revealed net earnings of $4.6 billion, just below the expected $4.71 billion.
According to Forbes, revenue reached $45.2 billion, slightly below the projected $45.3 billion, but up from $39.8 billion in the first quarter.
CEO Ted Decker said the results were "in line with our expectations" and reaffirmed the company's goal of 2.8% sales growth for the year.
CFO Richard McPhail told the Wall Street Journal and CNN that some price increases are coming due to higher tariffs on certain imported items.
"For some imported goods, tariff rates are significantly higher today than they were at this time last quarter," McPhail said.
"So as you would expect, there will be modest price movement in some categories, but it won't be broad based."
Home Depot now says it will be raising prices on some items due to Tariffs! The tariffs are affecting everything ! 🤬🤬 pic.twitter.com/VsYpuYAFgM
— Suzie rizzio (@Suzierizzo1) August 19, 2025
Higher Rates Delay Home Projects, Says Home Depot
This means Home Depot won't raise prices across all products, only on select items affected by tariffs.
Three months ago, the company had said tariffs might cause it to stop selling some products but had not committed to raising prices.
Billy Bastek, executive vice president for merchandising, added that less than half of Home Depot's inventory comes from outside the US The company is also working to diversify suppliers, aiming to keep no single foreign country supplying more than 10% of its goods.
McPhail noted that customers are avoiding large renovation projects, choosing smaller ones instead, mostly because of "general uncertainty and higher borrowing costs" tied to rising interest rates.
Mortgage rates have stayed just under 7% for much of the year, making big loans less appealing, CNN said.
Decker noted that the main reason customers postpone major projects is general economic uncertainty, which outweighs concerns about project costs or labor availability.
Despite facing challenges, Home Depot stays confident, highlighting that while some customers are postponing projects, demand for home improvement remains strong, and the company is preparing to meet it.
Originally published on vcpost.com
