Walmart to raise prices as tariff fears close wallets
Share this @internewscast.com

Many Americans have been pulling back on spending as they grow uneasy about the economy, and inflation remains elevated.

NEW YORK — Walmart saw its first-quarter profits decline and announced the need to increase prices due to rising costs from tariffs imposed by President Donald Trump.

The nation’s largest retailers posted strong quarterly sales Thursday and said it expects sales growth of 3.5% to 4.5% in the second quarter.

Much like other U.S. businesses, Walmart refrained from providing a profit forecast for the quarter, citing the unpredictable nature of U.S. tariff policies that are subject to frequent changes. However, the company upheld its full-year guidance given in February.

In the quarter that ended on April 30, Walmart reported earnings of $4.45 billion, or 56 cents per share, a decrease from $5.10 billion, or 63 cents per share, in the same period the previous year.

Adjusted earnings per share were 61 cents, exceeding the 58 cent projections from industry analysts, according to FactSet.

Revenue rose 2.5% to $165.61 billion, just short of analyst estimates.

Walmart’s U.S. comparable sales — those from established physical stores and online channels — rose 4.5% in the second quarter, though that’s slowed from a 4.6% bump in the previous quarter, and a 5.3% increase in the third quarter of 2024.

Shares rose almost 3% before the opening bell Thursday.

Business was fueled by health and wellness items as well as groceries. Sales were weaker in home and sporting good, which was offset by robust sales of toys, automotive goods and kid’s clothing, the company said.

Global e-commerce sales rose 22%, up from 16% in the previous quarter.

Future sales have become a concern for all retailers for a number of reasons.

Many Americans have been pulling back on spending as they grow uneasy about the economy, and inflation remains elevated. Trump’s tariffs on China and other countries threaten the low-price model that is at the core of Walmart’s success.

Trump’s threatened 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday, with some of the higher tariffs on pause for 90 days.

Retailers and importers had largely stopped shipping shoes, clothes, toys, and other items with the duties so high, but many will now resume importing from China in the narrow window, hoping to avoid sparse shelves this fall. Yet many retailers say they must raise prices to tariff costs. And they are also bracing for higher shipping costs fueled by a surge of companies scrambling to get their goods on ships to the U.S.

Walmart has built in hedges against some tariff threats. Two-thirds of Walmart’s merchandise is sourced in the U.S., with groceries driving much of that. Groceries account for roughly 60%, of Walmart’s U.S. business.

Still, Walmart isn’t immune and said it will have to raise prices even as it works to absorb the costs of the tariffs.

“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” said CEO Doug McMillon in a statement.

Walmart is among the first major U.S. retailers to report financial results and the numbers can provide a hint as to the mood of the American shopper and how the tariffs are impacting its business.

Earlier this month, Amazon announced higher first-quarter profit and sales that beat analysts’ projections, underscoring the online behemoth’s hold on shoppers looking for low prices and a wide selection in an uncertain economy.

Amazon brought in foreign goods before Trump’s tariffs took effect. And Amazon’s president and CEO Andy Jassy told analysts during its earnings call that many of its third party sellers did the same. And because of that move, a fair amount of third-party sellers haven’t changed their pricing yet, he said.

Share this @internewscast.com
You May Also Like
'Squid Game,' 'We Were Liars'

“Squid Game and We Were Liars: What You Need to Know”

The (heat) wave of new and returning television shows is here. Summer…
Mugshot of Takahiro Shiraishi.

Japan Executes ‘The Twitter Killer’: Social Media Predator Who Murdered and Dismembered Nine Victims

JAPAN has executed the man who brutally murdered eight women and one…
Sinaloa cartel hacker turned Mexico City cameras against FBI, leading to killings, DOJ says

Hacker for Sinaloa Cartel Used Mexico City Cameras to Target FBI, Resulting in Murders, DOJ Reports

A hacker working for the Sinaloa Cartel in Mexico was able to…
Freddy Versluys, CEO of OIP Land Systems, standing on Leopard 1 tanks.

Pro-Palestine Demonstrators Illegally Enter Warehouse, Causing Almost £1m in Damage to Military Equipment for Ukraine

A SWARM of pro-Palestinian protesters caused nearly £1million worth of damage to…
'Rust' crew settles lawsuit against film producers and Alec Baldwin in fatal shooting

Crew on ‘Rust’ Settles Lawsuit Against Film Producers and Alec Baldwin in Fatal Shooting

SANTA FE, N.M. (AP) — A civil lawsuit regarding the tragic shooting…
Hochul admits New York needs nuclear power — but getting it won't be easy

Hochul Acknowledges Necessity of Nuclear Power for New York, But Securing It Faces Challenges

Good news: Gov. Kathy Hochul has tapped the New York State Power…
Photo of Greg Josephson and a woman.

Prominent CEO Fatally Stabbed at Lavish Mansion Party; 15-Year-Old Faces Murder Charges

A LEADING CEO was fatally stabbed in a horrific knife attack during…
Inmates see an unlikely ally as they seek pardons: Trump

Inmates Find Unexpected Support in Trump for Pardons

The flurry of requests has been sparked by Trump’s frequent and eyebrow-raising…
Milwaukee police officers ambushed in alley shooting, suspect on the run

Milwaukee Police Officers Attacked in Alley; Suspect Fleeing

Two Milwaukee police officers were shot Thursday in an ambush-style attack, and…
Authorities arrest fugitive Antoine Massey who police say posted on social media following New Orleans jailbreak

Authorities Capture Escaped Fugitive Antoine Massey After Social Media Post Ties Him to New Orleans Jailbreak

Authorities in Louisiana apprehended one of the 10 men who fled a…
Chinese 'agroterrorism' could threaten US 'survival as a nation,' expert warns

Expert Warns That Chinese ‘Agroterrorism’ Could Endanger US National Survival

Two Chinese nationals have been arrested on charges of smuggling a crop-destroying…
Photo of a bride and groom on their wedding day.

Terrifying incident: YouTuber follows wife to safety spot before fatally stabbing her while she pushes baby in stroller

THIS is the chilling moment a YouTuber stalked his wife to a…