1126 ET - Home Depot has a higher exposure to imports than Walmart but isn't raising prices like Walmart is, probably because its operating margin is much wider, says Gimme Credit's Carol Levenson. Home Depot's adjusted operating margin on a trailing 12-month basis is 13.6%, while Walmart's is just 4.4%, the analyst says. "This gives Home Depot more wiggle room," she says. Home Depot may also rely less on China, which faces by far the highest tariffs, than Walmart does, the analyst says. Home Depot is touting its sourcing flexibility and says that by a year from now, no foreign country will account for more than 10% of its purchases, though that doesn't necessarily mean it will increase its sourcing from within the U.S., Levenson says. (dean.seal@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 11:26 ET (15:26 GMT)

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