WALMART PLANS TO RAISE PRICES AFTER NEW TARIFFS
Facing higher costs from President Trump’s tariffs (reduced from 145% to 30% on Chinese goods), Walmart plans to raise prices, despite efforts to absorb costs. Two-thirds of its merchandise is U.S.-sourced, with groceries driving 60% of U.S. business. The company expects 3.5% to 4.5% sales growth in Q2 but issued no profit outlook due to tariff uncertainty. Shares rose nearly 3% pre-market.
Walmart reported a first-quarter profit decline to $4.45 billion (56 cents per share) from $5.10 billion (63 cents per share) last year, though adjusted earnings of 61 cents per share beat analyst expectations. Revenue grew 2.5% to $165.61 billion, slightly below forecasts. U.S. comparable sales rose 4.5%, and global e-commerce sales increased 22%. Strong sales in health, wellness, groceries, toys, automotive, and kids’ clothing offset weaker performance in home and sporting goods.
