{"id":276,"date":"2025-05-15T11:12:43","date_gmt":"2025-05-15T11:12:43","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=276"},"modified":"2025-05-15T14:21:21","modified_gmt":"2025-05-15T14:21:21","slug":"walmart-says-it-will-raise-prices-due-to-tariff-costs-after-posting-solid-first-quarter-sales","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/05\/15\/walmart-says-it-will-raise-prices-due-to-tariff-costs-after-posting-solid-first-quarter-sales\/","title":{"rendered":"Walmart says it will raise prices due to tariff costs after posting solid first quarter sales"},"content":{"rendered":"<p><strong>By ANNE D\u2019INNOCENZIO, Associated Press Retail Writer<\/strong><\/p>\n<p>NEW YORK (AP) \u2014 Walmart\u2019s first quarter profit slipped and it said it must raise prices due to higher costs from\u00a0<a href=\"https:\/\/apnews.com\/article\/china-businesses-us-tariffs-pause-trade-ee5de150ac4ea36852c11bb6ab21af39\">tariffs<\/a>\u00a0implemented by President Donald Trump.<\/p>\n<p>The nation\u2019s largest retailers posted strong quarterly sales Thursday and said it expects sales growth of 3.5% to 4.5% in the second quarter.<\/p>\n<p>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.<\/p>\n<aside class=\"related left\">\n<h2 class=\"widget-title\" data-curated-ids=\"\" data-relation-type=\"automatic-primary-tag\">Related Articles<\/h2>\n<ul>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/14\/doordash-delivery-driver-fraud\/\" title=\"DoorDash delivery driver pleads guilty to stealing $2.5 million in deliveries scam\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tDoorDash delivery driver pleads guilty to stealing $2.5 million in deliveries scam\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/14\/overdose-deaths-2024\/\" title=\"US overdose deaths fell 27% last year, the largest one-year decline ever seen\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tUS overdose deaths fell 27% last year, the largest one-year decline ever seen\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/13\/rose-jackson-reinstated\/\" title=\"MLB reinstates Pete Rose and Shoeless Joe Jackson, making them Hall of Fame eligible\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tMLB reinstates Pete Rose and Shoeless Joe Jackson, making them Hall of Fame eligible\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/13\/menendez-brothers-hearing\/\" title=\"Judge reduces Menendez brothers\u2019 murder sentences, putting them a step closer to freedom\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tJudge reduces Menendez brothers\u2019 murder sentences, putting them a step closer to freedom\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/13\/egg-prices-fall-near-highs\/\" title=\"US egg prices fall for the first time in months but remain near record highs\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tUS egg prices fall for the first time in months but remain near record highs\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<\/ul>\n<\/aside>\n<p>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.<\/p>\n<p>Adjusted earnings per share were 61 cents, exceeding the 58 cent projections from industry analysts, according to FactSet.<\/p>\n<p>Revenue rose 2.5% to $165.61 billion, just short of analyst estimates.<\/p>\n<p>Walmart\u2019s U.S. comparable sales \u2014 those from established physical stores and online channels \u2014 rose 4.5% in the second quarter, though that\u2019s slowed from a 4.6% bump in the previous quarter, and a 5.3% increase in the third quarter of 2024.<\/p>\n<p>Shares rose almost 3% before the opening bell Thursday.<\/p>\n<p>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\u2019s clothing, the company said.<\/p>\n<p>Global e-commerce sales rose 22%, up from 16% in the previous quarter.<\/p>\n<p>Future sales have become a concern for all retailers for a number of reasons.<\/p>\n<p>Many Americans have been pulling back on spending as they grow uneasy about the economy, and inflation remains elevated. Trump\u2019s\u00a0<a href=\"https:\/\/apnews.com\/article\/china-tariffs-us-trump-150fab3a44ec055845e47c82bde544c2\">tariffs on China<\/a>\u00a0and\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-tariffs-reciprocal-imports-tax-trade-economy-54c0a26687dc96157d96229068894720\">other countries<\/a>\u00a0threaten the low-price model that is at the core of Walmart\u2019s success.<\/p>\n<p>Trump\u2019s threatened 145% import taxes on Chinese goods were reduced to 30% in a\u00a0<a href=\"https:\/\/apnews.com\/article\/china-us-switzerland-tariffs-negotiations-b3f5174d086e39b2522ab848ddad9372\">deal announced Monday<\/a>, with some of the higher tariffs on pause for 90 days.<\/p>\n<p>Retailers and importers had\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-tariff-economy-recession-china-imports-trade-8d90bb37735e833c43a7b7a9d5a0b9a2\">largely stopped shipping<\/a>\u00a0shoes, clothes, toys, and other items with the duties so high, but many\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-tariffs-china-business-reaction-0c12feba442877de63d5009c2c300f55\">will now resume importing<\/a>\u00a0from 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.<\/p>\n<p>Walmart has built in hedges against some tariff threats. Two-thirds of Walmart\u2019s merchandise is sourced in the U.S., with groceries driving much of that. Groceries account for roughly 60%, of Walmart\u2019s U.S. business.<\/p>\n<p>Still, Walmart isn\u2019t immune and said it will have to raise prices even as it works to absorb the costs of the tariffs.<\/p>\n<p>\u201cWe will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren\u2019t able to absorb all the pressure given the reality of narrow retail margins,\u201d said CEO Doug McMillon in a statement.<\/p>\n<p>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.<\/p>\n<p>Earlier this month, Amazon announced higher first-quarter profit and sales that beat analysts\u2019 projections, underscoring the online behemoth\u2019s hold on shoppers looking for low prices and a wide selection in an uncertain economy.<\/p>\n<p>Amazon brought in foreign goods before Trump\u2019s tariffs took effect. And Amazon\u2019s president and CEO Andy Jassy told analysts during its earnings call that many of its third party sellers did the same. And because of that move, a fair amount of third-party sellers haven\u2019t changed their pricing yet, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By ANNE D\u2019INNOCENZIO, Associated Press Retail Writer NEW YORK (AP) \u2014 Walmart\u2019s first quarter profit slipped and it said it must raise prices due to higher costs from\u00a0tariffs\u00a0implemented by President Donald Trump. The nation\u2019s largest retailers posted strong quarterly sales Thursday and said it expects sales growth of 3.5% to 4.5% in the second quarter.&hellip;<\/p>\n","protected":false},"author":1,"featured_media":275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/276"}],"collection":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/comments?post=276"}],"version-history":[{"count":1,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/276\/revisions"}],"predecessor-version":[{"id":277,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/276\/revisions\/277"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media\/275"}],"wp:attachment":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media?parent=276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/categories?post=276"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/tags?post=276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}