Home Depot's Q2 earnings fell slightly short of Wall Street's target, but the company announced some news that has potentially huge implications.

Home Depot’s sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns, but its performance missed Wall Street’s expectations.

Home Depot kept its annual forecasts intact despite posting muted quarterly results on Tuesday, but said some products may see small price hikes due to tariffs after previously suggesting they would generally not change.

Home Depot said tariffs will soon start hitting some price tags even as consumers continue to hold off on larger projects because of higher interest rates and economic uncertainty.

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Home improvement retailer The Home Depot has recorded $45.3bn sales for the second quarter (Q2) of fiscal 2025 - a 4.9% rise from the previous year. The growth comes despite a minor impact from foreign exchange rates on total company comparable sales,

The company's full-year forecast assumes no substantial change in the number of consumers revamping their homes.