Home Depot Shrugs Tariff Risk and Delivers Solid Q1 Results, Reiterates Guidance

The Home Depot, Inc. (NYSE:HD) is capitalizing on customers tackling smaller projects. That’s one of the company’s strategies as it navigates a challenging macroenvironment worsened by the US-China tariff war. That was evident after the home improvement retailer delivered solid first-quarter results on Tuesday. Net sales were up 9% year over year to $39.86 billion as earnings per share were in-line with forecasts at $3.56.

Following the better-than-expected Q1 2025 results, DA Davidson has reiterated a Positive outlook on Home Depot with a Buy rating and a $470 price target. The bullish stance also comes on the company reaffirming its full year outlook that points to 2.8% total sales growth and 1% comparable sales growth.

Homeowners have been offering bigger projects amid heightened borrowing costs and lingering concerns about inflation. Consequently, Home Depot has had to focus on homeowners working on smaller projects. In response to the challenging macro environment, Home Depot will maintain its current pricing levels across its portfolio. In addition, the company is increasingly diversifying its product portfolio sources to ensure no country accounts for more than 10% of its imports.  In addition, the company is pushing to shift production out of China as it aims to stay clear of the tariff war.

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