Three months after stating the company had no plans to increase prices due to tariffs, Home Depot has backtracked. On Monday, the national home improvement retail chain confirmed to the Wall Street Journal that it plans some “modest price movement” as the tariffs increase.

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.

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 improvement retailer Home Depot ($HD) is scheduled to announce its results for the second quarter of Fiscal 2025 on Tuesday, August 19. HD

A sluggish housing market and high inflation have hurt businesses at these home improvement product retailers.

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

CFO Richard McPhail said Home Depot continues to see the effects of a "deferral mindset" from homeowners, which began in roughly mid-2023.