Walmart's Pricing Balancing Act Amid Tariff Pressures
Walmart plans to raise prices due to tariff costs, despite U.S. sales exceeding expectations. The company's strategy includes managing tariffs and spreading price hikes. The retailer posted growth in sales and profits but withheld Q2 profit guidance amid economic uncertainty.
Walmart announced plans to increase prices later this month due to tariff-induced costs, even as it reported surpassing expectations for U.S. comparable sales in the first quarter. The retail giant, based in Bentonville, Arkansas, saw a 0.5% increase in pre-market trading, with its stock rising over 60% in the past year.
The retailer refrained from providing second-quarter profit guidance, citing ongoing uncertainty around tariffs spearheaded by Donald Trump, which have disrupted global trade. According to Chief Financial Officer John David Rainey, American consumers will experience higher prices starting at the end of May and into June.
CEO Doug McMillon emphasized Walmart's commitment to keeping prices low but acknowledged the challenges posed by tariffs. Analysts highlight Walmart's ability to manage potential price hikes, thanks to its diverse product range, while still projecting strong overall profit performance. Despite withholding Q2 profit guidance, Walmart maintained its annual sales and profit forecast for fiscal 2026.
(With inputs from agencies.)
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