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HD says they won't raise prices because of tariffs
Posted on 5/20/25 at 7:08 am
Posted on 5/20/25 at 7:08 am
quote:CNBC
Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,” Chief Financial Officer Richard McPhail told CNBC in an interview.
More than half of what the company sells comes from the U.S., he said. McPhail added that Home Depot and its suppliers have worked to diversify the source of the company’s imports over the past several years, including by decreasing the share of purchases that come from China. By this time next year, no single country outside of the U.S. will represent more than 10% of the company’s purchases, he said.
4
Posted on 5/20/25 at 7:22 am to bigjoe1
As a shareholder, this is horrible news. It’s a breach of fiduciary duty!
Maga doesn’t mean hurting shareholders!
Maga doesn’t mean hurting shareholders!
Posted on 5/20/25 at 7:38 am to SlidellCajun
Hopefully my sarcasm meter is working. 
Good on HD for diversifying the supply chain. Within a year no foreign country has more than 10% of their business is great. Hopefully others can follow that example.
Good on HD for diversifying the supply chain. Within a year no foreign country has more than 10% of their business is great. Hopefully others can follow that example.
Posted on 5/20/25 at 8:00 am to bigjoe1
quote:
Good on HD for diversifying the supply chain. Within a year no foreign country has more than 10% of their business is great. Hopefully others can follow that example.
I think the mega giants have been working diligently over the last 6 to 8 years to really broadcast their sourcing arrangements and move specifically away from China. A family friend has a business that sells a very large amount of seasonal items to WalMart. He mentioned a few years ago that WalMart had pushed them to move or add additional production facilities to other countries. Specifically India and Mexico is where he added manufacturing facilities. Interesting that India has seemingly been the most cooperative with the tarriff strategy this far.
Posted on 5/20/25 at 8:03 am to SlidellCajun
Change your password, Gaucho hacked you.
Posted on 5/20/25 at 8:09 am to bigjoe1
Do they’re going to eat it at the margins? Would be impressive if they can maintain margins and force their suppliers to eat all/most of it.
Posted on 5/20/25 at 8:13 am to slackster
He never said they wouldn't raise prices period.
I imagine in an inflationary environment they'll raise prices on pretty much all products and that would help with overall margins.
I imagine in an inflationary environment they'll raise prices on pretty much all products and that would help with overall margins.
Posted on 5/20/25 at 8:22 am to bigjoe1
Just another day where I found out that tariffs wont apply to me and i was right again
Posted on 5/20/25 at 8:32 am to SDVTiger
quote:
Just another day where I found out that tariffs wont apply to me and i was right again
I have no idea why you keep saying that. Both Trump and Bresent have said prices are going to rise due to tariffs.
Posted on 5/20/25 at 8:58 am to bigjoe1
They said they might rise a little in the short term. They never said that companies would push the entire tariff on consumers. Smart companies will look around to find alternative pricing to have leverage over suppliers.
Posted on 5/20/25 at 9:37 am to bigjoe1
quote:
Trump and Bresent have said prices are going to rise due to tariffs.
You let me know when that happens Bigjoe
Posted on 5/20/25 at 10:02 am to SDVTiger
Trump beat me to it.
Remember the temper tantrum when AMZN was going to disclose how much tariffs were responsible for price increases and demanding WMT eat the prices increases.
Remember the temper tantrum when AMZN was going to disclose how much tariffs were responsible for price increases and demanding WMT eat the prices increases.
Posted on 5/20/25 at 10:05 am to bigjoe1
quote:
we intend to generally maintain our current pricing levels across our portfolio
This does not mean that they will just eat the profits. What they most likely do is slightly drop their gross profit margin, and spread the added costs across the board.
Buy a product for $100 and sell for $125 for a 25% markup. That product now costs them $110 and they could just pass on the cost at $135 and their markup will drop to 22.7% while still making $25 on each unit.
Or they could take that extra 10% on their imports and spread over their entire portfolio. Then they could just increase the cost for all products less than 5% and their total gross profits would be the same if their sales remand steady.
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