https://abcnews.go.com/Business/wireStory/walmart-raise-prices-due-tariff-costs-after-posting-121828510
Walmart’s first-quarter profit slipped, and it said it must raise prices due to higher costs from tariffs implemented 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.

Like many other U.S. companies, however, it did not issue a profit outlook for the quarter because of the chaotic environment, with stated U.S. tariff policies changing constantly. The company maintained its full-year guidance issued in February.

Many Americans have pulled back on spending as they grow uneasy about the economy. Government data revealed slowing sales growth for retailers Thursday. Walmart said Thursday that its consumers remain cautious and selective. 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.

“We will do our best to keep our prices as low as possible,” Walmart's CEO Doug McMillon told industry analysts Thursday. “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.”

McMillon said price increases on the shelves will feel more gradual, but they had already begun as early as April, and they accelerated in May. The company said it has been focused on back-to-school receipts.

McMillon said that it imports general merchandise from all over the world from dozens of countries. But China, in particular, represents a big chunk of volume in certain categories like electronics and toys.

Tariffs on countries like Costa Rica, Peru and Colombia are raising costs on groceries like bananas, avocados, coffee and roses, he said. Walmart is absorbing costs on general merchandise within departments and not yet passing along rising costs in some cases.

Walmart is also asking suppliers to change input materials for components, for example, using fiberglass instead of aluminum, which Trump hit with tariffs in early March.

Walmart earned $4.45 billion, or 56 cents per share, in the quarter ended April 30, down from $5.10 billion, or 63 cents per share, in the same period last 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 fell 4% at 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.

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, underscoring the online behemoth’s hold on shoppers looking for low prices in an uncertain economy.

Amazon brought in foreign goods before Trump’s tariffs took effect. And CEO Andy Jassy said that many of its third party sellers did the same.

What is the American consumer getting out of this? How is this winning?

>>1406289
everyone else's life is now closer to being as shitty as the average magatard's life

>>1406291
According to this article it's going to get much worse for everyone by August.

>>1406289
So far, food is cheaper, gas is way cheaper, that's all I've noticed.

I'll trade higher costs on temu, for lower prices at the pump and the market

>>1406317
food is not cheaper and gas has nothing to do with tariffs

>>1406317
thanks for proving you're literally not american

>>1406289
You get to work in shitty factory. It will be manly and good.

If people are too incompetent to produce locally, then we truly do deserve to be owned by Israel.

>>1406289
An invconvenient short term for all future generations to live a better life without globohomo shit

>>1406325
your poltardation is terminal, enjoy being a slave to own the libs

>>1406322
>locally
define locally

>>1406317
bro turn on your monitor.

>>1406317
Gas being cheaper is because OPEC is flooding the market to undercut America. It's good for us but bad for the USA as a state.

>>1406326
>Own the libs
It's good policy for us, you, the world, and future generations. Owning the libs is essential to securing the future.
We would like to carry you, kicking and screaming, to a prosperous future.

>>1406405
i'm sure voting for the bankrupting of america and giving up the dollar's reserve status will secure the future for the children you will never have (because poltards will all die alone)

>>1406317
>So far, food is cheaper,
Mac & cheese from the food bank, eh? How's the rent/mortgage coming along, eh?

>>1406409
As if I'd ever listen to the opinion of someone who supports Democrats regarding monetary policy.
That would be insane.

>>1406416
you're not american

>>1406416
>I'll die before I stop working as a slave for my rich white masters
we know

>>1406418
But I don't have rich white masters and all the rich white masters are opposing tariffs.

>>1406420
it's funny how blackrock is literally working with trump too. you're literally never correct about anything, it's almost like pol is a bunch of useful idiots for an establishment that doesn't give a fuck about them

>>1406420
all the tariff money goes to the treasury, which the current administration can dictate the use. you think theres corruption now, just fucking wait. all this tariff money will be used to first offset tax cuts to billionaires, then itll be used to enrich trump and his family and friends.

we're 100 days in with over 3.5 years to go, we haven't seen shit yet.

>>1406424
Well, he's forced them too. Trump has already coerced him into dropping his DEI bullshit in most cases.
However, he, and his media company holdings, like you, oppose tariffs. He does it because he wants the money. You do it because he's paid people to influence people like you, who have never seen a tax they didn't like otherwise, to be against them.
Just think of all the roads we could build with 500% tariffs on rich people. Think of all the blacks we could stuff with fried foods to give them heart disease then funnel money to medicaid.
My lord. Why not 1000% tariffs? Think of the all the roads and browns. I think the problem here is that you lack compassion, and you're a libertarian who want to pay a toll for every private road.
What a jerk.

>>1406427
You only feel this way because you don't believe hard enough. Just act like Democrats, who ALWAYS have the absolute best intentions, are in charge (but not fucking up absolutely everything).

>>1406428
as the kids say, peak delulu

>>1406429
believe hard enough in donald trump whos been fucking up filing bankruptcy for half a century and nonstop lying?

>>1406433
Well, you believed in Biden who had a congressional voting record of constantly being opposed to your agenda and never held a real job.
I fail to see the reasoning here.

>>1406439
>you believed in Biden
pure conjecture. you tried.

>>1406442
There's no conjecture there. You believed he was a better choice and you probably still do, despite the evidence.
Yours is the minority opinion though, as was made evident in 2024 when brat didn't save you.

>>1406443
post less troll harder. you're fucking with the wrong one, ive been here all summer.

>>1406443
a toaster strudel was a better choice and history will agree, but enjoy your grifter president in the meantime

>>1406446
Newfag
>>1406447
Actually you elected a senile toaster streusel and it turned out pretty bad already (well you would've if you were American).

esl shill is projecting again

>>1406399
As in produce in the country, locally.

>>1406450
>senile toaster streusel
They're talking about Trump, right?

>>1406429
>Trump is now the economic fairy, you need to believe hard enough, and possibly clap your hands.
Total maga cope

>>1406510
I'm not sure anymore, us presidential candidates are bad, but a senile old guy that does nothing cept drooling is more preferable than senile grifting maniac that signs EOs for updoots on social media

>>1406516
So that's why Biden signed all those gay, faggot, troon EOs.
Interesting concept. It think it's more likely his campaign was funded by fagtivists.

esl shill, as usual, cannot get queer sex out of his mind for a single moment

>>1406529
It's a fact he signed a bunch of fag EOs, faggot.
And the weird part is 100% of chomos are LGBTQ. So essentially he signed EOs enabling child molesters.
Shocking.

it's shocking that esl shill never takes a day off. if he isn't a paid shill, why is he doing it? dos he get off to the jeers and constant reminders that he's irrelevant

>>1406532
I'm not your extra special lover.