Home Depot affirmed its full-year growth outlook for adjusted earnings per share to decline approximately 2%, for total sales to increase by about 2.8% and for comparable-sales growth of about 1%. Home Depot expects to open approximately 13 new stores during the year, in line with its prior guidance.

Until now, America’s largest home improvement retailer has limited what it has said about the impact of tariffs on its prices. But after reporting quarterly results Tuesday, CFO Richard McPhail said Home Depot would have to implement some price increases as a result of the Trump administration’s taxes on imports.

In Q1, Home Depot experienced solid demand for smaller projects and seasonal activities; however, high interest rates deterred many consumers

Home Depot reported weaker-than-expected quarterly earnings and sales, signaling there still hasn’t been a full-on rebound for home improvement. Yet the stock was moving higher on Tuesday as investors shrugged off the second quarter and looked toward the shares’ next catalyst: interest-rate cuts.