President Trump's scolding brought Wal-Mart's stock price pressure.
Shares of the retail giant fell about 2% in previous market transactions on Monday after Trump's social media posts over the weekend, which urged the company not to raise prices due to tariffs on Chinese imports.
“Walmart should stop trying to blame tariffs, which is why the chain raises prices across the entire chain. Walmart made billions last year, far exceeding expectations. Between Walmart and China, they should be like 'eat tariffs', rather than charging customers.
Walmart shares have been one of the best performances in sales and profits over the past year, with shares rising 54% while Dow Jones Industrial Average (^dji) upfront payments of 6%.
A Walmart spokesman told Yahoo Finance: "We have been working on keeping prices as low as possible and we won't stop. Given the reality of small retail margins, we will keep prices as low as possible."
Walmart CEO Doug McMillon was one of the CEOs who met with Trump in late April to discuss the impact of tariffs. A familiar discussion told Yahoo Finance Walmart proposed a case of completely eliminating tariffs on China, as lower tariffs would have a significant impact on the prices of general goods, such as furniture and toys.
The Trump administration and China agreed to allocate 90 days last week. The U.S. tariff rate on China is currently at 30%, down from 145% at the peak of trade quarrel between economic superpowers.
"Low prices are our position and we will keep prices as low as possible," Walmart Chief Financial Officer John David Rainey said last week on Yahoo Finance's Catalysts (video above) last week after the company's first-quarter revenue. "But when you look at the increase in the cost of imports in certain categories, it's more than retailers can afford. That's more than suppliers can afford."
"So we will work hard to keep the price low. However, it is inevitable that we will see prices for certain items rising."
Renney says price increases will be noticeable later in May
"Well, if you have a 30% tariff on certain things, you're probably going to see double digits (price increases)" Renney added.
Walmart's most influential areas will include strollers, furniture and toys. According to Brooke Dipalma of Yahoo Finance, the price increase in these sectors could have a significant impact on suppliers such as the Newell Brand (NWL).
Walmart's quarterly earnings were mixed on Thursday, as shoppers cautiously spent some time given greater economic uncertainty.
Sales in the first quarter rose 2.5% from the previous year to $165.6 billion, and estimated at $166.02 billion.
Adjusted EPS rose 1.7% year-on-year to $0.61, and is estimated at $0.58. Same-store sales in the United States also increased by 4.5% by 4.5%.
However, compared to last year's trend, the company did see a growth trend in transactions at Walmart US stores in the quarter.
Although Walmart reiterated its full-year earnings earnings outlook for EPS of $2.50 to $2.61, it was mostly below analysts' estimates of $2.61. Although retailers beat the profit estimates of $0.03 in the first quarter.
Walmart said that if our tariff rates on Chinese goods return to 145% (and other "liberation day" levels), increasing returns would be challenging. It also leaves the potential for more caution during the holidays, depending on how back-to-school shopping is developing.
"We continue to believe that WMT is one of the best places to mitigate the impact of tariffs," said Steven Shemesh, an analyst at RBC Capital Markets.
Shemesh maintains performance priorities for Walmart stocks. According to Yahoo Finance data, about 91% of analysts have made a purchase or a strong buy of Walmart stock.
Brian Sozzi It is the executive editor of Yahoo Finance. Follow Sozzi on X @briansozzi,,,,, Instagram Then continue LinkedIn. Tips about the story? Send an email to brian.sozzi@yahoofinance.com.
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