Home Depot Inc. (NYSE:HD) expressed during its second-quarter earnings call that it is navigating a complex economic landscape where new President Donald Trump‘s tariffs and stubbornly high interest rates are fueling customer hesitation on large-scale projects.
Check out Home Depot’s stock price over here.
Consumers Stall Big-Ticket Projects
In its second-quarter earnings call on Tuesday, executives painted a picture of a resilient consumer still engaging in smaller home improvement jobs, but holding back on major renovations due to broad economic concerns.
The primary headwind, according to leadership, is a pervasive sense of caution among consumers. While transactions for items over $1,000 grew 2.6%, the company noted softer engagement in discretionary projects that typically require financing.
CEO Ted Decker stated that when customers are asked why they postpone major work, the chief reason isn’t cost or labor, but something more fundamental. “By a wide margin, economic uncertainty is number one,” Decker told analysts.
Tariffs, High Interest Rates Fuel Uncertainty
Executives confirmed that on some imported goods, “tariff rates are significantly higher today than they were when we spoke in May,” which will lead to “modest price movement in …