Home Depot (HD) doesn’t plan to increase prices alongside tariffs. Chief Financial Officer Richard McPhail told CNBC that “we intend to generally maintain our current pricing levels across our portfolio.” He attributed this ability to “the great partnerships we have with our suppliers and productivity that we continue to drive in our business.”
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Home Depot’s ability to avoid price increases is thanks to it not putting all its eggs in one basket. The company has a diversified supply chain, offering it resources from various countries. It has also reduced its reliance on goods from China over the last few years, which has proven beneficial under the Trump administration.
All-in-all, Home Depot sources more than 50% of its goods from the U.S., allowing it to largely avoid tariffs. The home improvement retailer intends to continue its supply diversification, which will result in no country outside of the U.S. representing more than 10% of its goods. This is a stark contrast to rival Lowe’s (LOW), which has warned tariffs could increase prices due to its international supply chain.
Home Depot Reports Mixed Q1 Results
Investors will note the Home Depot tariff update follows the company’s Q1 2025 earnings report. Results were mixed, with adjusted earnings per share of $3.56 below Wall Street’s estimate of $3.60. However, revenue of $39.9 billion surpassed analysts’ estimate of $39.3 billion.
Investors were pleased on Tuesday morning despite the mixed Q1 results. Shares of HD stock rose 2.32%, helping to erase its 1.85% decrease year-to-date. The company’s sales beat and commitment to not raise prices likely boosted investor confidence today.
Is HD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Home Depot is Moderate Buy, based on 20 Buy, eight Hold, and one Sell ratings over the last three months. With that comes an average HD stock price target of $426.72, representing a potential 12.48% upside for the shares. These ratings and price target will likely change as analysts update their coverage after today’s earnings.
See more HD stock analyst ratings
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