Core Viewpoint - The retail sector, particularly companies like Home Depot, is expected to experience a deceleration in sales growth due to tariff impacts, but overall performance is not anticipated to be disastrous as consumers continue to spend despite price increases [4][5][6][7]. Retail Sector Analysis - Retailers like Home Depot have a broad global supply base, with a significant portion of sourcing already occurring in the US, which may mitigate the impact of tariffs [2][3]. - There is an expectation of a slowdown in retail sales growth from 5% in August to a lower rate as the holiday season approaches, indicating a potential air pocket in the fourth quarter [5][6]. - The consumer response to price increases has been surprisingly resilient, with continued purchasing behavior observed [4]. Company-Specific Insights - Walmart is gaining market share and is well-positioned to absorb tariff pressures while maintaining margin growth [9]. - Home Depot is viewed as a potential recovery play in the home improvement sector, especially with anticipated stimulus measures expected to exceed the negative impacts of tariffs [10]. - The auto parts sector, represented by companies like AutoZone, is also expected to perform well due to the inelastic demand for essential products, even in the face of price increases [11].