Home Depot Warns Of Price Changes From Tariffs
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Home Depot (HD) reported second quarter results that missed on revenue, earnings, and same-store sales growth. Yet shares are rising in pre-market trading on hopes that consumers focusing on small home improvement projects could benefit the retailer.
Home Depot will report quarterly earnings before the bell on Tuesday, as the retailer leans on roofers, landscapers and other home professionals to help drive sales growth and weather tariff-related uncertainty. Here's what Wall Street expects for Home Depot's fiscal second quarter, according to a survey of analysts by LSEG:
The home-improvement chain is now one of the companies most caught up in Trump's immigration crackdown. The retailer's history with day laborers is long. So far, it's choosing to keep its distance.
Home Depot’s sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns, but its performance missed Wall Street’s expectations.
In Q1, Home Depot experienced solid demand for smaller projects and seasonal activities; however, high interest rates deterred many consumers
Home Depot said tariffs will soon start hitting some price tags even as consumers continue to hold off on larger projects because of higher interest rates and economic uncertainty.
Home Depot kept its annual forecasts intact despite posting muted quarterly results on Tuesday, but said some products may see small price hikes due to tariffs after previously suggesting they would generally not change.
The company's full-year forecast assumes no substantial change in the number of consumers revamping their homes.
Home Depot customers are putting their kitchen remodels and bathroom upgrades on hold as they turn instead to smaller projects that can be funded in cash, like painting and yard improvements, said Home Depot execs.
Wall Street's main indexes were set for a mixed open on Tuesday as investors assessed retailer Home Depot's earnings for insights on the health of the American consumer and awaited a key Federal Reserve conference scheduled later in the week.