Wal-Mart said in February that this is not "immunization" for President Donald Trump's tariff fees. Now, it is preparing shoppers to pay more and potentially within weeks.
The retail giant may start launching tariff-related price increases at the end of this month, and I certainly hope there will be more in June. Sales in U.S. stores rose 4.5%, and the company's e-commerce business achieved its first profitable quarter.
But “It’s a challenging environment to operate in retail right now,” Renney said, speaking to Bloomberg on Thursday. He noted that despite recent hardships with the UK and China, the Trump administration must address further without "historical precedents" that have increased speed and speed without "historical precedents", but this week's view analysts also shared the protocol's heels.
Several other major brands recently revised or cancelled their financial outlook for the rest of the year, saying they are struggling to see changing White House trade policies impact their businesses. Walmart maintains sales and profit guidance for 2025. However, because “the scope of recent results is very broad and difficult to predict”, it was decided not to provide guidance on operating income or earnings per share. ”
Many companies that sell products at Walmart, such as Stanley Black & Decker, Adidas, Mattel and Procter & Gamble, have raised prices or tipped for expected hikes.
"If the duty goes away, of course it won't go up," Adidas CEO Bjorn Gulden said in late April. "But I think we all agree that the duty should be retained or even higher, then of course it will lead to a price increase in the market."
Walmart stock has risen nearly 8%, far exceeding Target and Costco earnings since Trump announced global tariffs on April 2 (and then partially took them away in a few days). Its stock has grown by about 7% so far this year.
Analysts believe Walmart is in a relatively good position and can handle some headwinds in the retail sector. Deutsche Bank researchers said Thursday ahead of the company’s earnings report that it could benefit from shoppers’ “value-seeking behavior” as consumers grow increasingly pessimistic. They say Walmart's size allows it to offer "a compelling price" even if it faces higher costs.
Locations accessing Walmart fell 2.4% in the first quarter, according to Placer.ai. But the foot trading analysis firm found visiting Walmart’s Sam’s Club wholesale store, known for bulk bargaining, up 2.7% over the same period. Placer said other member supermarkets, including BJ and Costco, also saw a jump in the flow of people.
Indeed, Walmart’s traditional retail business has been inspired by its own subscription product, Walmart+. CNBC reported last month that members of the company's $12.97 plan, which is planned monthly, accounted for nearly half of the company's online spending in the last fiscal year, and nearly triple the shelling, CNBC reported last month.