Home Depot reaffirms annual forecasts despite weak quarter

STORY: Home Depot reaffirmed its annual sales and profit forecasts on Tuesday, sending its shares up as much as 5% in morning trading.

The steady outlook came despite disappointing second-quarter results for the country's top home improvement chain, as customers rein in spending on large-scale renovations and focus on do-it-yourself projects.

Home Depot kicked off a closely watched earnings week for big-box retailers, including Walmart and Target, that will show how consumers are dealing with rising costs and sour economic sentiment.

Despite shifting tariff rates, Home Depot had said in May it would keep its prices unchanged.

But on Tuesday, the retailer - which sources more than 50% of its products domestically - said its tariff-related costs were higher than expected, resulting in modest price hikes on some of its imported products.

Still, the company maintained its annual sales growth target of about 2.8%.

Home Depot's results helped lift shares of rival Lowe's, which reports its quarterly results on Wednesday. Related Videos

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