TD Cowen analyst Max Rakhlenko told clients that Home Depot is "better positioned to manage tariffs," as its Pro business makes up 50% of its customer business, compared to Lowe's, which has a 20% exposure to Chinese goods and a larger DIY customer base. Another factor weighing on the retailer is the sluggish housing market, which Home Depot has called out in recent quarters. Homebuilder confidence continued to deteriorate in May, falling six points to 34 from the month prior, indicating that more builders view conditions as poor rather than good. Expected sales in the next six months and traffic from prospective buyers also fell to an 18-month low.