REUTERS/Dado Ruvic/Illustration
Home Depot said it had no plans to pass on the cost of tariffs to consumers despite their financial impact.
“We intend to generally maintain our current pricing levels across our portfolio,” CFO Richard McPhail told CNBC on Tuesday. He cited the retailer’s scale, “great” partnerships with suppliers, and productivity as key factors enabling it to absorb rising costs.
Home Depot had diversified its supplier base and no country outside the US would account for more than a tenth of its purchasing within 12 months, McPhail added.
The comments follow Walmart’s announcement that it would raise prices in the coming weeks in response to the financial impact of President Donald Trump‘s tariffs.
Retail analysts told Business Insider that Walmart’s move gave other retailers air cover to follow suit.
McPhail’s comments come as Home Depot posted a 9.4% rise in first-quarter sales to $39.9 billion, although comparable sales fell by 0.6% due to the impact of foreign exchange rates.
Net earnings fell $200 million to $3.4 billion compared with the same period last year.
CEO Ted Decker said in a statement that the first-quarter results were in line with our expectations.
“We feel great about our store readiness and product assortment as spring continues to break across the country,” he said.
Home Depot maintained its full-year guidance of a 2.8% rise in total sales and an approximately 1% increase for comparable sales.
The stock rose 2.5% in premarket trading.
This is a developing story. Check back for updates.
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