Home Depot proves greedy Walmart bosses wrong in major win for for all shoppers
The Home Depot just gave American shoppers a little peace of mind.
Its executives don't expect major price changes over the next 12 months, a huge contrast to other big chains — like Walmart, Target, and Best Buy — that have warned about tariff-related price hikes.
'We don't see broad based price increases for our customers at all going forward,' Billy Bastek, the executive vice president, said during The Home Depot's earnings call.
Executives at major brands have roiled President Donald Trump with their announcements about price hikes.
The President, who campaigned on lowering prices during the 2024 election, has lashed out against Walmart and Amazon after both companies said his policies would make consumers pay more for common products.
In a post on Truth Social, the President told the companies to 'eat the tariffs.'
But major corporations have to protect their profits, retail experts told DailyMail.com.
The companies, who have relied on US foreign trade deals to supply their stores, will likely face major layoffs if they don't stay in the green.
'Produce from overseas will be impacted heavily because margins are low and costs need to be passed across,' Neil Saunders, the retail expert at Global Data, previously told DailyMail.com.
'General merchandise, especially home products and electronics, will also be impacted as they are heavily reliant on overseas production.'
But no price rises at The Home Depot, which has 2,300 stores and dominates the US DIY sector, from two key factors.
First, the company has deep US product sourcing. Second, its betting President Donald Trump will extend a pause on higher-than-expected 'Liberation Day' tariffs.
'We anticipate that 12 months from now, no single country outside of the United States will represent more than 10 percent of our purchases,' CFO Richard McPhail said in a statement.
'We intend to generally maintain our current pricing levels across our portfolio.'
The Home Depot also said it would start slashing products that are produced abroad.
'There are items that we have that could potentially be impacted from a tariff that, candidly, we won't have going forward,' Bastek added.
Walmart's executives said shoppers will likely see increased prices because of Trump's tariffs
Home Depot sources less than half its products outside North America and has been deliberately pulling back from China in recent years.
That strategy is paying off. The company reported $39.86 billion in net sales for the quarter ending May 4, topping analyst expectations.
Shares rose 2 percent in premarket trading after the company reiterated its fiscal 2025 forecast. That is also standing in stark contrast to other major American brands that have removed their 2025 financial expectations.
Home Depot's founder, Ken Langone, recently joined a growing list of executives that had criticized Trump's tariff policies.
'I don't understand the goddamn formula,' the billionaire said.
'I believe [Trump's] been poorly advised by his advisers about this trade situation — and the formula they're applying.'
But the pricing pullback shows that retailers are caught in between two difficult choices: say nothing, or warn customers and risk angering the President.
With rivals sounding alarms about rising costs, Home Depot is trying something bolder: standing still.
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