Latest news with #Bastek
USA Today
2 days ago
- Business
- USA Today
Home Depot to keep prices steady, but tariffs may limit product availability
Home Depot to keep prices steady, but tariffs may limit product availability Show Caption Hide Caption Home Depot not increasing prices as sales beat expectation despite tariffs Home Depot announced it will not be increasing prices due to tariffs, as other big-box stores say they will have to raise prices. Straight Arrow News Home Depot HD.N said on Tuesday it will keep prices unchanged despite U.S. tariffs that might, however, make some products unavailable at the home-improvement chain, which also reported that first-quarter sales beat estimates. Billy Bastek, Home Depot's executive vice president of merchandising, told analysts on a post-earnings call that the company intends "to maintain pricing across our portfolio." But that means some products could disappear from shelves. "There's items that we have that could potentially be impacted from a tariff that, candidly, we won't have going forward if it doesn't make sense inside the line structure," Bastek said. He did not name any specific items that might be affected. Consumer-facing companies are among the most affected by U.S. President Donald Trump's high tariffs on imports. Several have issued gloomy quarterly results and pulled annual forecasts, due to economic uncertainty. The nation's largest retailer, Walmart WMT.N, warned last week that shoppers could soon face higher prices due to tariffs. Trump later suggested Walmart should "eat" the higher costs. Atlanta-based Home Depot is less exposed to China than Walmart. It sources less than half of its goods outside North America, and has cut its exposure to China in recent years. CEO Ted Decker told investors that within the next 12 months, no single country outside the U.S. will represent more than 10% of its purchases. Tariff troubles: Trump treasury secretary says Walmart will absorb some tariff costs – but shoppers may still pay more Net sales for the quarter ended May 4 came in at $39.86 billion, compared with estimates of $39.31 billion, according to data compiled by LSEG. It logged adjusted profit per share of $3.56, missing expectations of $3.60. The company might be able to lean on suppliers to bear the brunt of tariffs, said Sheraz Mian, director of research at Zacks Investment Research. "But if they are committing to pass none of the incremental impact on to end consumers, then they will have to absorb the remaining tariff costs internally, which would hit margins," he added. The company's operating margin dipped to 12.9% for the quarter, down from 13.9% for the year-ago period. Budget constraints Recent slowness in home improvement retail - often viewed as a bellwether for economic health - has observers watching Home Depot closely for signs of a downturn. The retailer is in its "Super Bowl season," Bastek said, referring to the spring and summer months when people tend to lawns, gardens and DIY home projects. Budget constraints continue to weigh on larger home renovation activities, which Decker acknowledged on Tuesday could be a result of macroeconomic fears. On paper, Decker said, conditions seem good for big projects: unemployment is low, inflation is trending down, and with housing turnover stubbornly low, people are staying in their homes rather than moving. "There are literally trillions of dollars of equity available to be tapped in the homes," Decker said, but added, "there's still enough macro uncertainty" to discourage big projects. Home Depot's acquisition of SRS Distribution last year has boosted its ability to capture spending from the professional customer base, including contractors. Company executives noted the business was performing above expectations. The company's commitment to avoid price hikes could help Home Depot increase market share, analysts said. "We expect widening price gaps vs. smaller competitors ahead," Jefferies analyst Jonathan Matuszewski said in a note on Tuesday. The company's overall comparable sales dipped 0.3% in the quarter, hurt by a weak February due to inclement weather. Analysts expected a 0.15% drop. It maintained its fiscal 2025 sales growth forecast of 2.8%, and adjusted profit-per-share decline of 2% from last year. Shares fell 0.5% on Tuesday. Reporting by Savyata Mishra in Bengaluru and Nicholas P. Brown in New York; Editing by Devika Syamnath, Matthew Lewis and David Gregorio
Yahoo
21-05-2025
- Business
- Yahoo
Home Depot is ‘laser focused' on elevating customer service through associates
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. The Home Depot's stores are the heart of its experience, and associates' product and project knowledge are its key differentiator, Ann-Marie Campbell, senior executive vice president of U.S. stores and operations, said on a Q1 2025 earnings call Tuesday. The home improvement retailer launched a training program for associates that educates them on localized product knowledge, according to Campbell. The company is also deploying worker-facing generative AI tools to make it easier to access Home Depot's knowledge base. The company aims to replicate the associate-led shopping experience online with the Magic Apron generative AI tool suite, according to EVP of Merchandising Billy Bastek. Magic Apron, which can answer customer questions, drove strong customer engagement and contributed to online conversion growth since it launched in March. Delivering a high level of service helps Home Depot win with professional contractors and DIY customers alike, according to Campbell. 'Customers come to the Home Depot to solve their home improvement problems and build their dreams, and it is our job to consistently deliver the best interconnected shopping experience,' Campbell said during the call. 'To do that, we must be laser focused on our associates and showing that we are providing the tools they need to continue to be engaged, knowledgeable and ready to serve our customers.' The retailer's investments in tools and technology are improving employee retention rates and employee engagement, according to Campbell. More engaged employees offer customers better service, which in turn improves customer satisfaction. Home Depot is investing in its employees against a backdrop of macroeconomic uncertainty. The company reported 9.4% year-over-year sales growth to $39.9 billion in the first quarter of 2025, according to an earnings report. Global comparable sales were down 0.3% year over year, though U.S. comparable sales rose 0.2%. Online sales were a bright spot for Home Depot. Sales through digital platforms were up 8% year over year, driven by investments in interconnected shopping experiences and faster delivery time, according to Bastek. 'Those customers benefiting from faster delivery are engaging more and spending more with us across our categories,' Bastek said. Home Depot will continue leaning into speed as a differentiator for the professional contractor experience, according to President and CEO Ted Decker. The company plans to complete an order management system upgrade by the end of the year that is expected to improve the number of on-time deliveries for pro customers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
