Home Depot Holds the Line on Prices Amid Tariff Pressures

While retail giant Walmart warned consumers about rising prices due to tariffs, Home Depot is committed to keeping prices low. The home improvement supplier will use its size and strength to keep prices level, at least for now.

For several years, Home Depot has maintained a supply chain that is majority U.S.-based. To mitigate the financial damage of tariff fees, the company imports less than half of what it sells, and it has been steadily decreasing its reliance on products from China. Home Depot has also pledged to reduce imported goods even more.

“We anticipate that 12 months from now, no single country outside the United States will represent more than 10% of our purchases,” CFO Richard McPhail told The Wall Street Journal.

McPhail noted that recent home value increases and a confident job environment got consumers thinking about renovations. With that, Home Depot pulled in some decent financial figures in the first quarter of 2025.

Home Depot by the Numbers

In Q1 2025, Home Depot earned $39.9 billion in total revenue, a 9.4% increase compared to the same three-month period last year. Net income reached $3.4 billion, somewhat less than Q1 2024’s $3.6 billion.

Also in the quarter, customers spent more per visit compared to the same quarter last year. The average purchase at checkout, which included both in-store and online, was $90.71, just a few cents more than last year’s figure. Total customer transactions went up 2.1% to 394.8 million.

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

As tariffs continue to impact all retailers, it’s hard to say how long Home Depot can absorb the extra costs. The retailer can pressure vendors and suppliers to keep prices in line, but that strategy can likely only go so far.

When Walmart announced price hikes related to tariffs, President Donald Trump criticized the world’s largest retailer. In a subtle message to all companies, the president told Walmart to “eat the tariffs.”

If Home Depot can “eat the tariffs,” it’s likely to avoid such disapproval from the White House. Unless something changes, we won’t know how the home improvement chain performed absorbing the tariffs until the end of the second quarter.