Home Depot CFO Richard McPhail talks domestic supply chain
Home Depot CFO Richard McPhail joins 'Closing Bell Overtime' to talk domestic production, its supply chain, the labor market, and more.
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Yahoo
41 minutes ago
- Yahoo
From Tariffs to Tags: The Price Hike Reality for US Shoppers (Part 2)
So far in 2025, the U.S. economy has maintained its strong performance, propelled by factors like low unemployment and real wage gains, according to the National Retail Federation (NRF). Nevertheless, policy uncertainty, primarily linked to the unpredictable nature of Trump's tariffs and ongoing legal disputes, is eroding both consumer and business confidence. For 2025, the NRF anticipates retail sales to expand between 2.7% and 3.7%, hitting between $5.42 trillion and $5.48 trillion. This outlook is consistent with 2024's 3.6% sales growth ($5.29 trillion) and matches the 3.6% average annual growth recorded in the ten years prior to the pandemic. Even with these broader economic trends, the retail sector confronts unique challenges. This second part of our series will delve into how other retailers are reacting to ongoing tariff issues and the implications for investors in this volatile climate. (Read Part 1 here now). Home Depot missed Q1 earnings expectations but reaffirmed its full-year guidance — a signal of operational confidence despite economic headwinds and tariff pressures. CFO Richard McPhail emphasized that the company does not plan to raise prices in response to tariffs, citing Home Depot's size, strong supplier relationships, and ongoing productivity gains as buffers. More than half of the company's inventory is U.S.-sourced, and McPhail noted that no single country outside the U.S. will represent more than 10% of imports by next year — reflecting a long-term shift away from Chinese dependence. The company has been steadily diversifying its supply chain for years. However, with high interest rates dampening home improvement demand and tariffs threatening product costs, executives acknowledged that if certain items become too expensive to source under current trade policy, they may simply be removed from the shelves. For now, Home Depot is betting on scale and flexibility, while keeping pricing steady to maintain customer loyalty in a cooling housing market. Lowe's reported a smaller-than-expected Q1 sales drop, thanks in part to steady demand from professional contractors. Like its rival Home Depot, Lowe's said it aims to remain price competitive, although it did not rule out increases in the second half of the year when newer, tariff-impacted inventory reaches shelves. CFO Brandon Sink expects flat profit margins this fiscal year, signaling that Lowe's is absorbing some near-term cost pressures. About 60% of Lowe's products are sourced from the U.S., while 20% still come from China. The company has expanded its network of local suppliers and diversified its sourcing to cushion the tariff blow. Investors should watch for incremental pricing shifts as the year progresses — particularly as older, pre-tariff inventory phases out and newer stock reflects rising input costs. Best Buy posted solid Q1 earnings but lowered its full-year outlook, citing the growing impact of tariffs and weakening consumer demand. The retailer has already raised prices on some items, including electronics heavily sourced from China — such as smartphones, laptops, and appliances. CEO Corie Barry called price hikes a 'last resort', but said they've already gone into effect for select goods as of mid-May. The company's sourcing has shifted considerably in recent months: China now accounts for about 33% of imports (down from 55% earlier this year), while 25% of goods come from the U.S. and Mexico, and the rest from other tariff-exposed countries like Vietnam and South Korea. Despite the price increases, demand has held steady for now. Still, the margin pressure and uncertainty over future tariffs have led Best Buy to guide lower, warning that it will continue adjusting pricing and sourcing strategies as conditions evolve. For ultra-price-sensitive retailers like Dollar Tree, tariffs pose a direct threat to their core value proposition. After raising its base price point from $1 to $1.25 in 2021, the chain is now considering further price increases on select products to offset rising costs from ongoing U.S. trade actions. CEO Michael Creedon said the first round of 10% tariffs on Chinese goods cost the company roughly $15–$20 million per month, but Dollar Tree has mitigated around 90% of that impact so far. Additional tariffs on Mexico and Canada, now partially in effect, could add another $20 million monthly burden. Dollar Tree is still evaluating how best to absorb these costs, and due to the fluid policy environment, the company has not fully factored tariffs into forward guidance. Surprisingly, the company is observing a rise in demand from higher-income customers in addition to low-income shoppers, indicating a broader shift in consumer behavior: seeking value is now a common behavior across different income levels. For investors, the situation poses a complex challenge: U.S. consumer spending has remained resilient so far, but rising retail prices and cost-cutting responses hint at a deeper strain brewing beneath the surface. Many retailers are trading cautiously on guidance, with some already lowering earnings forecasts — a potential red flag for stockholders seeking stability in a volatile market. Tariff-driven margin compression could weigh heavily on retail earnings in the second half of the year, especially if trade tensions escalate or consumer sentiment falters. The on-again, off-again nature of Trump's tariffs creates another layer of unpredictability, making it increasingly difficult for companies to plan their supply chains and pricing strategies. This uncertainty is compounded by recent court rulings that have challenged the legal basis for some of these tariffs, leading to a dynamic situation where the very existence of certain levies is in question. Furthermore, there's always the possibility that the U.S. might completely rule out some tariffs, or pivot to different trade strategies, adding another layer of complexity for businesses and investors trying to anticipate future costs and market conditions. Retail-focused ETFs and sector funds may underperform broader indices if tariffs remain in play. Investors should watch for further price guidance during the next quarter's earnings season, especially from Walmart, which sets the tone for the sector. Moreover, long-term investors may want to examine which retailers have stronger supply chain flexibility, digital infrastructure, and pricing power. Companies able to adapt quickly — either by diversifying sourcing or leveraging scale — are more likely to weather the storm than those with rigid or China-heavy supply networks. In short, Trump's tariff chessboard is reshaping the retail landscape, forcing companies to choose between shrinking profits and rising shelf prices. For shoppers, the consequences are already visible. For investors, they're only just beginning to play out. This article was originally posted on FX Empire Should You Invest in the US Stock Market Now? Romania: Election of Centrist Candidate Supports Structural Reform Momentum Though Fiscal Pressures Remain Weekly Data for Oil and Gold: Price Review for the Week Ahead From Tariffs to Tags: The Price Hike Reality for US Shoppers (Part 2) Urban Outfitters Seeing Inflows Profits, Big Money Inflows Send SEI Shares Higher
Tom's Guide
4 hours ago
- Tom's Guide
Lululemon's ‘We Made Too Much' section just restocked — 15 finds I'd buy now from $9
Lululemon's 'We Made Too Much' section is my favorite place to shop high-quality activewear at great prices. Right now this section is packed with a ton of awesome items, from Align leggings to Scuba hoodies. You can currently score Lululemon apparel and accessories from $9. For example, these Align High-Rise Crop 23" leggings are on sale from $59. Originally priced at $98, this is an awesome price drop that you don't want to miss — we rank these as the best gym leggings on the market. Plus, the super comfortable and supportive Beyondfeel Running Shoes are on sale from $99. Prices vary based on your choices of size and color, so check out any different color options available in your size to find the best deals. If you're looking for Father's Day gifts, check out the deals I'd buy from $12 in Home Depot's Father's Day sale. Providing light support for A-C cups, this Lululemon Racer Bra is suited for casual wear or light exercise. It's made of super-soft and stretchy Nulu fabric, and you can even flip it back to front to change the look of the straps. On sale from $29, the Lululemon Love Tank Top is soft, stretchy and breathable. Its fit floats away from your body, making it great to wear on warmer days or during sweaty gym sessions. Plus, the style goes with everything. These Lululemon shorts are great for tough workouts. Made of ribbed Luxtreme fabric, they provide extra support and wick sweat. Plus, this style comes in a cool camo print. Need a new t-shirt to fall in love with? This Lululemon crewneck is perfect for the job. It's soft, stretchy and is cut for the perfect easy, relaxed fit. Plus, it comes in a range of pretty colors to match your favorite outfits. These Lululemon shorts are designed for casual wear, are lightweight and stretchy as well as sweat-wicking. With a high-rise cut and 3.5-inch length, these look super cute with a cropped shirt or hoodie. These biker shorts are super cute and come in a variety of colors and lengths. This pair happens to be the 6-inch version and they feature stretchy, breathable material that's great for yoga class or just lounging at home. Perfect for running or training, this Lululemon long sleeved shirt is now available from $59. It's sewn with minimal seams to reduce the possibility of chafing and the Swiftly Tech fabric reduces the growth of odor causing bacteria. You can now pick up a pair of 23-inch Align leggings starting from just $59. Sizes are selling out fast, so act fast to get the ones you want. These are buttery soft, supportive and even have a hidden pocket to store small items. These Lululemon pants come in a beautiful range of colors, and even a floral print. Even better, they can now be yours starting from just $69. Their loose fit and lightweight material makes them great for hot weather, so get them now and make the most of the warm days ahead. This half-zip scuba hoodie exudes comfortability. It's made with a plush, cotton-blend fleece fabric that's naturally breathable and insanely soft against the skin. Then, the oversized fit is perfect for throwing over a sports bra on your way to the gym or for reaching maximum coziness at home. Everybody needs socks, so you might as well make yours good ones. These Lululemon Unisex Daily Essential Crew Socks are now on sale from $9, and they provide arch support and cushioning for a super comfortable feel. The double stripe and Lululemon logo at the top gives them a stylish look. If you need something to keep your hair under control while you're working out, this Lululemon Ribbed Nulu Twist-Front Headband is a very stylish way to do so. It comes in a selection of pretty colors including Bone, Black and Strawberry Milkshake. It also wicks sweat and dries fast. Power runs with this Lululemon running hat on sale from $24. Made from swift fabric with four-way stretch, it's lightweight and sweat-wicking with an adjustable back closure. Some of the comfiest flip-flops you'll find, the Restfeels have a soft fabric strap and a cushioned midsole to keep your feet supported. They're currently available in a cheerful Red Glow colorway. Score the Lululemon Cityverse Sneakers from $59. Designed with the female foot in mind, these sneakers have layered cushioning to support you with every step. Reviewers love how comfortable these sneakers are, although note that Lululemon recommends sizing up if you have wide feet. These shoes are designed with runners in mind, with a mesh upper to keep your feet cool, cushioned midsole, and a 10mm heel-to-toe drop. They weigh 307g and the outsole design "mirrors a woman's natural footstrike for a smooth ride." Our Fitness Editor James Frew put these shoes to the test and found they were soft, supportive and versatile.
Associated Press
5 hours ago
- Associated Press
FLUIDMASTER ANNOUNCES A NEW REVOLUTIONARY SUPER FLAPPER
DON'T FEAR THE FLAPPER 'We took great care in designing the entire purchase and installation experience into the product to help consumers with their home toilet repair'— Corinne AndersonSchoepe, Chief Branding Officer SAN JUAN CAPISTRANO, CA, UNITED STATES, June 3, 2025 / / -- Fluidmaster proudly announces the recent launch of the new universal Super Flapper ™, a groundbreaking innovation designed to simplify toilet repairs by taking the guesswork out of which size flapper you have in your toilet. The universal Super Flapper™ is the first of its kind to replace either 2-inch or 3-inch flappers with one product. 'We took great care in designing the entire purchase and installation experience into the product to help consumers with their home toilet repair' said Corinne AndersonSchoepe, Chief Branding Officer. 'Our innovative packaging, with an interactive sizing guide allows consumers to measure the flapper they have in store before purchasing. We are excited that the universal Super Flapper™ was recognized by the Home Depot as a 2024 Innovation Award finalist.' Key Features of the Super Flapper™: One Flapper That Converts Into Two Sizes - Universal Fit The universal Super Flapper™ is uniquely designed to convert into two sizes so it can replace either a 2-inch or 3-inch toilet flapper. Adjustable Water Usage With an easy-to-turn adjustment dial, users can tailor their water usage from eco-friendly flushing to maximum performance aligning with their preferences for flush performance. Easy Installation The universal Super Flapper™ offers a straightforward installation process, making it the easiest toilet repair you can do yourself. Now available at Home Depot, Lowe's, Ace Hardware, and select retailers nationwide, the new universal Super Flapper™ is sold separately or as a kit with the Performax Fill Valve. For media inquiries or for more information, contact Erik Glassen at 949 728 2420 or by email at [email protected], visit About Fluidmaster Established in 1957 and reaching across the world, Fluidmaster remains a family-owned and operated company known for its superior engineering of efficient and reliable toilet components. The company has become an icon in the plumbing industry, with operations in North America, Europe, the United Kingdom, China, Turkey, and India as well as a worldwide distribution network selling more toilet tank replacement valves than any other manufacturer in the world. The company's global headquarters is located in San Juan Capistrano, California. ERIK GLASSEN FLUIDMASTER +1 949-728-2420 [email protected] Visit us on social media: LinkedIn Instagram Facebook YouTube Other Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
