Home Depot misses estimates and hints at price moves

Tariffs and higher borrowing costs weigh on spending as Home Depot misses earnings and revenue estimates ahead of key retail results.

Home Depot Sees Price Changes After Earnings Miss

Home Depot reported second-quarter net earnings of $4.6 billion, below the consensus of $4.71 billion, with revenue of $45.2 billion versus $45.3 billion expected. The results show growth from the first quarter but a pace that trailed Wall Street expectations. Chief Executive Ted Dinker said the results were in line with the company’s expectations and the full-year outlook remains intact, including a 2.8 percent growth in sales for the year. Chief Financial Officer Richard McPhail warned that higher tariff rates for some imported goods could affect prices but would not be broad-based. He added that customers are avoiding large, multiweek projects in favor of smaller jobs due to uncertainty and higher borrowing costs. Home Depot imports less than half of its inventory from outside the United States.

The report captures a familiar retail tension: tariffs squeeze margins and complicate pricing, even as online channels gain ground. The data suggest shoppers are trimming big renovations and investing in smaller fixes, a trend that may persist if borrowing costs stay high. If tariffs remain a headwind, retailers will need to balance selective price moves with promotions and digital selling to keep foot traffic from eroding further. The week ahead will reveal whether peers like Lowe’s, Target, and Walmart see the same patterns and how policy moves reshape consumer spending.

Highlights

The next earnings reports will reveal how tariffs reshape everyday buying in the months ahead.