Home Depot Profit Dips Amid Economic Woes

Home Depot experienced a decrease in its fiscal fourth-quarter profit, largely due to prevailing economic uncertainty, elevated interest rates, and a sluggish housing market that have tempered home improvement activity. Chief Financial Officer Richard McPhail noted that consumer uncertainty and "frozen housing conditions" are influencing spending habits, even though homeowners remain a financially stable consumer group.

Last year, Home Depot implemented price increases on certain items to counteract tariffs, which McPhail acknowledged affected demand but does not plan further hikes. The company has observed that economic factors such as declining home prices and a less robust job market are causing homeowners to postpone remodeling. Additionally, high interest rates have curtailed discretionary upgrades often financed, and a stalled housing market limits renovation projects tied to property sales.