Home Depot says the increases in customs tariffs are coming and that customers are postponing projects to improve the largest homes as concerns about the economy

Ted Decker, CEO of Home Depot, said during a profit call on Tuesday, while people may be drawn again and work on their arenas, they do not withdraw the operator on greater improvements.

Richard McVille, Financial Director of Financial Employees at Home Depot, said that these largest domestic improvements projects are usually funded through loans, while smaller projects can be completed with cash payments, which play on the frequency of consumers.

Consumers have never canceled the kitchen reshaping or upgrading the cuisine of the debt -fund the Wall Street Journal.

Interest rates remained stubbornly in the wake of the Federal Reserve Battle with inflation. The Federal Reserve has maintained interest rates between 4.25 % and 4.5 % since late 2024, although some are looking for the comments of the Chairman Jerome Powell next Jackson Hall Economic policy symposium for imminent reduction signs. Meanwhile, economists have increasingly warned of the recession threat, a mixture of low growth and high enlargement, with an annual inflation rate increased at about 2.7 % in July and increased threats to employment.

However, consumers steadily treat improvements in the smaller home despite a The last slowdown in the housing marketThis means that there are fewer projects before and after the sale of the house.

Part of the reason that Home Depot is persistent is that its customer base is richer, consisting of 80 % of homeowners. This demographic group has greatly stood a company, benefiting from fixed workers and a sharp increase in property values since 2019, while uncertainty caused customs tariffs and inflation in other less rich groups Returning spending in some areas.

McVille told CNBC.

The latest profit report at Home Depot includes the crowded spring season, where both home and contractors owners make more projects due to the warmer and dried weather. A sales event on the Black Spring Friday witnessed a boost in its devices, gardening, plumbing, and division, related to smaller projects. However, sales were not clear in kitchen countertops and bathroom categories that are usually associated with large projects.

However, support in the smaller projects in the Home Depot report helped for its revenues of $ 45.28 billion for the last quarter, and it improved during the past year during the same period, although it is less than $ 45.41 billion. Company Dow stock top up With 3.17 % on Tuesday from midday.

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