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HD Profits Rise on Tariff Refunds Amid Cooling Housing Market
Home Depot's profits received a boost in the second quarter thanks to tariff refunds. The US retailer reported a 4.3% increase in operating profit, which rose to $6.8 billion. However, when tariffs are stripped out, profit would have actually fallen.
The company benefited from a total of $730 million in tariff refunds received at the end of June. This reduced its cost of goods sold by $685 million. The refunds were likely due to a reversal of previous tariffs imposed on imported goods.
The home improvement market is facing headwinds as structurally higher mortgage rates are deterring Americans from moving homes and reducing their visits to Home Depot (US:HD). This has led to a decline in the company's sales.