Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We continue to expect tariffs to be neutral at the EPS level as we shared with you in Q1.
We are starting to see a few green shoots out there... that they were shifting some of their production from Asia into Mexico, and we've got a strong service product coming out of Mexico.
questions remain around the next steps and impact of tariffs.
We are factoring in non-tariffs as they are written, assuming any moratoria means a later revision to higher rates, net of all of our mitigation options.
Free cash flow during the quarter was $243 million despite a nearly $35 million headwind from tariffs.
the ongoing tariff uncertainty
Tariff-driven price increases had a modest impact on the quarter due to timing and was somewhat offset by deflation in our commodity categories.
In April, we noted that traded fiscal policy proposals added uncertainty to employment levels, inflation, interest rates and economic growth.
During the quarter, incremental costs related to tariffs were about $4 million, affecting EPS by $0.02.
We continue to see pressure in the discretionary categories... Should consumers face rapid broad-based price increases in the back half of the year, we could encounter short-term reactions, particularly by lower-income DIY consumers.