Home Depot cites tariffs in planned price hikes; Target names new CEO amid sales slump; Guess retail chain to go private

Home Depot officials this week said small price increases for some products are likely on the way, as the nation’s largest home improvement retailer joins other firms in responding to cost pressures from current and pending hikes in import tariffs. Specific product pricing plans were not announced, though Home Depot officials said pullbacks in discounting are also likely on the way.

The Atlanta-based operator of more than 2,300 stores reported 4.9% annual sales growth for its second quarter, with net income essentially unchanged from a year earlier. The company projected annual sales growth of about 2.8% for full-year 2025, on par with prior guidance, although still small by historical standards.

CEO Ted Decker said second-quarter results were in line with its expectations, as customers “engaged more broadly” in smaller home improvement projects, although the retailer faces continued question marks from slow home sales. “Certainly some relief on mortgage rates in particular could help,” Decker said during an earnings call with analysts Tuesday.

Several major companies have warned of likely price hikes fueled by tariffs, such as Walmart, Macy’s, Ford, Sony and Mattel. Nearly a third of U.S. businesses plan to raise prices by year’s end in response to climbing costs including tariffs, according to a survey report this week from financial services firm LendingTree.

Home Depot executives said the company is considering more acquisitions to support growth in its business geared to professional contractors, after June’s announcement that its SRS Distribution subsidiary plans to acquire specialty building products distributor GMS. Home Depot purchased SRS last year for $18.2 billion.

Target Wednesday named Chief Operating Officer Michael Fiddelke as its new CEO, as the retailer seeks to rebound from a long slowdown in sales. The Minneapolis-based operator of more than 1,900 stores said Fiddelke will take the helm on Feb. 1 as current CEO Brian Cornell becomes executive chairman.

Target’s second-quarter earnings beat analyst estimates but continued a generally sluggish trend of the past several quarters, with sales declining 0.9% from a year earlier as net income dropped 21.5%. Company executives Wednesday reiterated their forecast calling for a low-single-digit sales decline for full-year 2025 compared with 2024.

Target is among several retailers reporting slowing sales and rising costs during the past year amid consumer spending pullbacks and widespread concerns about the effects of trade tariffs on prices. Target previously announced measures to minimize tariff effects, including renegotiating supplier contracts and shifting sourcing for some of its merchandise.

In a company statement, Fiddelke said his priorities as CEO will include improving the customer experience in its stores, refocusing the merchandise mix and deploying technology to boost efficiency.

Fashion chain Guess agreed to be taken private by Authentic Brands in an all-cash acquisition deal that values the retailer at about $1.4 billion, the companies announced Wednesday. It’s among the latest corporate changeovers in a challenging climate for mall-based clothing retailers, several of which have closed stores during the past year.

The agreement calls for New York-based Authentic Brands, owner of Reebok, Champion and Quicksilver among other brands, to own 51% of Guess intellectual property. The rest of that IP would be owned by a group of current Guess stockholders, including co-founders Maurice and Paul Marciano and CEO Carlos Alberini.

Los Angeles-based Guess will retain its current management after the deal closes in this year’s fourth quarter, the companies said. Guess operates about 1,000 stores worldwide but announced plans in April to close 20 underperforming locations by the end of its 2026 fiscal year.