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Home Depot to Raise Some Prices; Target Names New CEO; Activist Pressures CSX By Mark R. Long

Tariffs are prompting Home Depot to raise prices on some items and to speed up the diversification of its supply chain.

The Wall Street Journal's Nicholas G. Miller and Inti Pacheco write that the price hikes will hit as consumers hold off on larger home-improvement projects because of higher interest rates and economic uncertainty. Shoppers are moving ahead with smaller projects that they can pay for with cash, Home Depot CFO Richard McPhail says. The retailer previously said it wouldn't raise prices as a result of tariffs, but McPhail said there would be some "modest price movement" in some categories.

Home Depot's same-store sales rose 1% in the latest quarter, though transactions fell 0.9%. The housing market has been stubbornly slow as high home prices, high interest rates and economic doubts turn off buyers, cutting into the retailer's sales in recent quarters.

While the tepid market has damped construction of single-family homes, a burst of rental housing construction led to a surprise 12.9% leap in housing starts last month from a year earlier. Economists had expected a 2.8% increase. The Journal's Rebecca Picciotto writes that the surge represents a fundamental divergence in the housing market, with apartment construction recovering steadily while single-family building declines. Construction of projects with five units or more is 18.1% higher from the start of the year.

Toll Brothers cut its home deliveries guidance for the full year. (WSJ)

Target picked a lifelong employee, Michael Fiddelke, to become its new CEO in February. The Journal's Sarah Nassauer writes that Fiddelke, currently chief operating officer, will take over a company enduring a prolonged sales slump . On Wednesday it said quarterly comparable sales fell 1.9%, the 11th consecutive quarter of flat or falling sales.

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Quotable Railroads

Ancora Holdings told CSX it should pursue a deal with a rival or replace its chief executive if it doesn't. Lauren Thomas writes that, according to a letter reviewed by the Journal, the activist investor is prepared to launch a proxy fight for board seats later this year if the railroad doesn't heed its advice.

The pressure comes weeks after Union Pacific struck a $71.5 billion deal to acquire Norfolk Southern. Ancora had agitated at Norfolk Southern, landing four seats on its board, ahead of the tie-up. Ancora believes CSX should explore deals with both BNSF Railway, owned by Berkshire Hathaway, and Canadian Pacific Kansas City Southern, the letter says. CSX said it welcomes opportunities to increase its value and regularly engages with shareholders.

C.R. England Trucking and logistics company the Transload Group said they support the merger of Union Pacific and Norfolk Southern. (Trains.com) Global Trade

WSJ VIDEO: China is building a massive export terminal in Brazil that could spell the loss of billions of dollars in revenue for U.S. farmers. The aim behind the facility is to replace U.S. soybeans and other foodstuffs with products from the South American agricultural powerhouse. WSJ reporter Samantha Pearson explains .

Number of the Day In Other News

The pace of inflation in Canada cooled last month , with consumer prices rising 1.7% from a year earlier. (WSJ)

China's top diplomat visited India, suggesting deeper cooperation amid threats to free trade. (WSJ)

India suspended its 11% duty on imported cotton until Sept. 30. (Reuters)

Plymouth Industrial REIT got an unsolicited takeover proposal from Sixth Street Partners that values the real-estate investment trust at about $1.07 billion. (Dow Jones Newswires)

Truckstop.com said it acquired Denim, a financial-tech and factoring service focused on the transportation sector. Terms weren't disclosed.

Levi Strauss said it hired Victoria's Secret executive Chris Callieri to oversee its global supply-chain operations. (Dow Jones Newswires)

Union leaders said Air Canada's flight attendants would return to work after a deal was reached to end a three-day strike. (WSJ)

Peabody Energy called off a $3.78 billion agreement to buy Anglo American's steelmaking coal operations. (WSJ)

Japanese shipbuilders are balking at investing in the U.S. as agreed in the two countries' trade deal. (Nikkei Asia)

The main Port of Baltimore channel reopened Tuesday after an explosion on a coal carrier vessel closed it Monday. No injuries were reported. $(WBAL)$

Saudi Arabia is leading a challenge against the International Maritime Organization's plan to cut shipping emissions, saying it would cause global inflation and slow economic growth. (Lloyd's List)

Italian shipbuilder Fincantieri filed a $100 million lawsuit against Owens Corning and its Paroc unit, alleging they supplied faulty fire insulation panels used on 11 ships. (Marine Insight)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

August 20, 2025 07:04 ET (11:04 GMT)

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