Home Depot's Sales Slip: What's Next for Prices?

Home Depot's latest financial report shows a slight dip in earnings and revenue. The company made $4. 6 billion, which is a bit less than expected. Their sales also fell short, with $45. 2 billion in revenue compared to the predicted $45. 3 billion. Despite this, it's still an improvement from the first quarter's $39. 8 billion. The company's CEO, Ted Dinker, said the results were as expected. They still predict a 2. 8% sales growth for the year. However, the CFO, Richard McPhail, warned that some prices might go up due to higher tariffs on imported goods. He assured that these price changes won't be widespread. Home Depot imports less than half of its products from outside the U. S. Customers seem to be choosing smaller home projects over bigger ones. This could be because of uncertainty and higher interest rates. In May, Home Depot said they wouldn't raise prices because of tariffs. But now, they're hinting at possible price changes for some items. They didn't specify which products might be affected. Other big retailers like Lowe’s, Target, and Walmart will report their earnings soon. This could give a clearer picture of how tariffs are affecting spending. Interestingly, fewer people are visiting Home Depot stores. Foot traffic dropped by 4. 3% in July and is down by at least 2. 5% for the year. On the bright side, online sales are up by about 12% compared to last year.