The Chief Executive Officer of Home Depot, Craig Menear informed that they are trying to reduce the effect of increased tariffs on the overall price of the goods by trying to reduce costs in other areas of supply. Home Depot manufactures almost 70% of its products in United States. This will also have a less impact of increased tariff on the business. This information was passed on by the CEO during an interview. He also informed that it is too early for them to answer that where the impact of the tariff will be actually realized.
In the month of May the company had informed that they are expecting an increase in the share prices; it was assumed that the share prices will rise by 3.1% which will make each share worth $10.03. The company also assumed increased sales in the same- stores by 5%; increase in overall revenue was expected to rise by 3.3%.
The analysts from Refinitiv surveyed to find that in the 2nd quarter, Home Depot share price will be $3.09 while the revenue amount will stand at $31 billion. He also informed that the recent decrease in the price of Lumber is leading to financial pressure on Home Depot. Menear also showed a ray of hope by stating that the recent sales have increased due to high demand during the summer. He informed that whenever he makes a call to the stores, he finds the official contractors of the business to be busy.
He also said people are busy these days remodeling the houses as almost 52% of the home stocks are older than 40 years in United States. Menear stated that they are expecting a financially good year for the company. He also informed that Lowe is considered by Home Depot to be a good competitor.