Home Depot says it doesn't expect to boost prices because of tariffs

Home Depot doesn't expect to raise prices because of tariffs, saying it has spent years diversifying the sources for the goods on its shelves.

Billy Bastek, executive vice president of merchandising, said during a conference call on Tuesday that Home Depot's suppliers have shifted sourcing across several countries and that the company doesn't expect any single country outside of the U.S. will represent more than 10% of its purchases 12 months from now.

“We don’t see broad based price increases for our customers at all going forward,” he said.

Other companies, domestic and foreign, have warned customers that price hikes are on the way due to a trade war kicked off by the U.S.

Walmart said last week that it has already raised prices and will have to do so again in the near future. Late Monday, Subaru of America said it would raise prices on some of its most popular models by as much as $2,000.

President Donald Trump lambasted Walmart, saying on social media over the weekend that the retail giant should “eat” the additional costs created by his tariffs.

As Trump has jacked up import taxes, he has tried to assure a skeptical public that foreign producers would pay for those taxes and that retailers and automakers would absorb the additional expenses. Most economists are deeply skeptical of those claims and have warned that the trade penalties would worsen inflation.

Tariffs on materials like lumber are also a concern for both homebuilders and home buyers. A homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home -- the national median listing price in April, according to data released this month by Realtor.com

Additional housing material costs would put home ownership out of reach for more potential buyers, though Home Depot is somewhat insulated as it sources the majority of its lumber in the U.S.

Early last year, the company said that about 17% of its wood is sourced from Canada. The company would not say Tuesday if those import levels have changed though after negotiations, Canadian lumber was exempted from additional 25% U.S. tariffs.

During the first quarter, Home Depot’s revenue climbed as customers spent slightly more on smaller home projects.

A number of U.S. companies have lowered or pulled financial guidance for investors as tariffs launched by the the Trump administration scramble world trade but on Tuesday, Home Depot stuck by earlier projections of sales growth at around 2.8%.

Shares of the Atlanta company dipped slightly on Tuesday.

Revenue rose to $39.86 billion from $36.42 billion a year earlier, beating the $39.3 billion that analysts polled by FactSet expected.

Sales at stores open at least a year, a key gauge of a retailer’s health, edged down 0.3%. In the U.S., comparable store sales climbed 0.2%.

Wall Street anticipated a 0.1% decline in same-store sales.

Customer transactions rose 2.1% in the quarter. The amount shoppers spent climbed to $90.71 per average ticket from $90.68 in the prior-year period.

“Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events,” Home Depot Chair and CEO Ted Decker said in a statement.

Home improvement retailers like Home Depot have been dealing with homeowners putting off bigger projects because of increased borrowing costs and lingering concerns about inflation.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows.

Sales of previously occupied homes have dropped as elevated mortgage rates and rising prices discouraged home shoppers.

Existing home sales fell 5.9% in March from February to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors said. The March sales decline was the largest monthly drop since November 2022, and marks the slowest sales pace for the month of March going back to 2009.

Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years.

“One of the central problems for Home Depot is the skittish housing market,” Neil Saunders, managing director of GlobalData, said in a statement. “While last quarter was robust, home sales declined by 3.1% year-over-year this quarter as consumers were deterred from moving by continued high interest rates and growing economic uncertainty. This lack of recovery makes it difficult to drive home improvement spending.”

For the three months ended May 4, Home Depot Inc. earned $3.43 billion, or $3.45 per share. A year earlier the Atlanta-based company earned $3.6 billion, or $3.63 per share.

Stripping out certain items, earnings were $3.56 per share. Wall Street was calling for earnings of $3.60 per share.

FILE - A Home Depot logo sign hands on its facade, Friday, May 14, 2021, in North Miami, Fla. (AP Photo/Wilfredo Lee, File)

PITTSBURGH (AP) — The Pittsburgh Steelers could have outside linebacker T.J. Watt back for their “win or go home” showdown with Baltimore for the AFC North title on Sunday night.

Coach Mike Tomlin said Tuesday he's “more optimistic” than he has been that the perennial Pro Bowl edge rusher will be available after sitting out each of the past three games while recovering from surgery to repair a partially collapsed lung sustained following a dry needling treatment.

Tomlin added he'd like to see Watt practice fully at some point this week. Watt was a limited participant last week before being held out of Sunday's 13-6 loss to Cleveland, a setback that cost the Steelers (9-7) a chance to wrap up the division with a week to go.

Now, Pittsburgh either needs to win or tie the Ravens (8-8) on Sunday night to win the AFC North for the first time since 2020.

Tomlin doesn't think Watt's extended downtime will have a significant impact on the 31-year-old Watt's stamina, should he be cleared to play.

“I doubt that TJ is ever out of football shape or conditioning over the course of a 12-month calendar,” Tomlin said. “I just know how he lives his life and how he prepares and how thoughtful he is in terms of what he puts in his body and how we trains.”

While Watt's familiar No. 90 could return, massive tight end Darnell Washington is out indefinitely after having surgery on Monday for a broken arm suffered in the first half against the Browns. Tomlin did not rule out Washington's potential availability should Pittsburgh advance to the playoffs, though the Steelers would likely need to make a deep run to have any chance of seeing the uniquely talented 6-foot-7, 300-plus-pound Washington in the huddle.

Wide receiver Calvin Austin III (hamstring), veteran left guard Isaac Seumalo (triceps), cornerback Brandon Echols (groin) and cornerback James Pierre (calf) — all of whom sat out last week — could return against the Ravens.

The Steelers will need as many healthy bodies available as possible, particularly on offense, to avoid a stunning late collapse. Pittsburgh sputtered in Cleveland without suspended wide receiver DK Metcalf, who will also sit out this week as punishment for making contact with a fan in Detroit earlier this month.

Pittsburgh managed just 160 net yards passing against the Browns, a big chunk of it coming on a last-second drive that ended with Aaron Rodgers throwing incomplete in the end zone to wide receiver Marquez Valdes-Scantling on three consecutive plays.

Rodgers had perhaps his best game of the season in Pittsburgh's road win at Baltimore on Dec. 7, thanks in large part to a seven-catch, 148-yard performance from Metcalf. Downfield shots were nowhere to be found on a blustery day in Cleveland, where Rodgers' longest completion was a 29-yarder to tight end Pat Freiermuth.

While Tomlin allowed both teams will add a “wrinkle” or two in the rematch, the reality is scheme is unlikely to play a significant role in a series that has produced its fair share of memorable high-stakes meetings through the years.

The stakes should keep the Steelers from having a hangover after letting the lowly Browns jump to an early 10-point lead before holding on.

Asked if it was frustrating to lose to a team that came in with just three wins on the season with so much on the line, Tomlin shrugged.

“Man, there’s a lot of things that you could get frustrated about in our business,” he said. “I’ve learned to kind of always move forward. My windshield is much bigger than my rearview.”

Maybe, but there's a chance the game could also be the 264th and final regular-season game of quarterback Aaron Rodgers' Hall of Fame-caliber career. The 42-year-old four-time MVP said over the summer that his 21st season could be his last, though he also said last week he feels as if he's aging backward and has been relatively healthy save for a broken left wrist that forced him to sit out a loss to Chicago in late November.

Rodgers said on Sunday that he expects Pittsburgh to recover and beat the Ravens. That inherent confidence is one of the reasons the Steelers spent months courting him in free agency last spring.

“That’s one of the things that made him really attractive to us, that ‘can do’ attitude and the experience and resume that goes with it,” Tomlin said. “I don’t think it’s work for him. I think it is as natural as breathing. And so if he’s breathing, I expect to see that from him as we lean in on this game."

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Pittsburgh Steelers head coach Mike Tomlin speaks during a news conference after an NFL football game against the Cleveland Browns, Sunday, Dec. 28, 2025, in Cleveland. (AP Photo/David Richard)