Investors shouldn't get scared off because of short-term pressure. Home Depot's management is always finding ways to generate growth opportunities and become more efficient, and its approach to tariffs should boost investor confidence. The company purchased SRS last year to expand its market opportunity, which it sees as $1 trillion.

The home improvement retailer, which has experienced sluggish sales, also said the price strategy could help it compete better with rivals.

Home Depot has announced it will maintain its current pricing strategy despite the potential impact of President Donald Trump's tariffs.