Walmart has announced plans to raise prices on certain items later this month, attributing the decision to increased costs stemming from tariffs implemented by the Trump administration.
The retailer's first-quarter earnings report revealed a decline in profit, with net income falling to $4.45 billion, or 56 cents per share, compared to $5.10 billion, or 63 cents per share, in the same period last year. Despite this, revenue rose by 2.5% to $165.61 billion. U.S. comparable sales grew by 4.5%, driven largely by strong performance in groceries and health-related items.
Walmart CEO Doug McMillon stated, "We will do our best to keep our prices as low as possible but given the magnitude of the tariffs... we aren't able to absorb all the pressure given the reality of narrow retail margins."
The company indicated that price increases would begin appearing toward the end of May and become more noticeable in June. These adjustments are a response to the elevated costs associated with tariffs on imports, particularly from China, which, despite a recent reduction from 145% to 30%, continue to impact Walmart's supply chain.
Walmart sources approximately two-thirds of its merchandise domestically, with groceries accounting for about 60% of its U.S. business. However, the retailer acknowledges that it cannot entirely shield consumers from the effects of international trade policies. The company is working closely with suppliers to manage costs and minimize the impact on shoppers.
As one of the first major U.S. retailers to report financial results this quarter, Walmart's performance offers insight into the broader retail landscape amid ongoing tariff-related challenges. The company's ability to navigate these economic headwinds will be closely watched by industry analysts and consumers alike.
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