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The company said it won’t raise prices due to tariffs, diverging from Walmart’s warning
Home Depot Inc (NYSE:HD) stock is in focus this morning, after the home improvement giant made headlines by stating it will not raise prices in response to new tariffs -- a direct contrast to Walmart (WMT), which recently warned of higher consumer prices. CFO Richard McPhail told CNBC the company plans to “generally maintain current pricing levels,” citing its scale, strong supplier relationships, and years-long effort to diversify sourcing away from China.
The comments came alongside the company’s first-quarter results, where Home Depot missed earnings estimates for the first time since May 2020 but topped revenue expectations. The retailer reaffirmed its full-year forecast, which assumes the recently lowered 30% tariff rate on Chinese imports remains in place.
Last seen 1.1% higher at $383.52, HD is attempting to overcome a modest 2.5% year-to-date deficit. The equity is trading at its highest level since early March, and just cleared long-term resistance at its 100-day moving average.
Options traders are responding. So far today, 23,000 calls and 16,000 puts have changed hands -- 7 times the average intraday volume. Most popular are the weekly 5/23 357.50-strike call, followed closely by the 362.50-strike call from the same series.