Home Depot's sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns and economic uncertainty, but its performance missed Wall Street's expectations. The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of rising tariff costs, though they won't be broad-based. Company executives told analysts during the earnings call after the results were released that more than 50% of its products are sourced domestically and wouldn't be subject to any tariffs. In May, Home Depot said it didn't expect to raise prices because of tariffs, saying it had spent years diversifying the sources for the goods on its shelves. But Billy Bastek, executive vice president of merchandising at Home Depot, told analysts on Tuesday that tariff rates are significantly higher than they were when it released earnings results in May. "Our customers tend to shop for the entire project, " Bastek said.