Tariffs will take their toll, the giant discount retailer cautions
"If you've not already seen it, it will happen in May and then it will become more pronounced," said Walmart Chief Financial Office John David Rainey, and he wasn't talking about the weather.
Rainey was talking about higher prices brought on by the tariffs imposed by President Trump, in an interview with Bloomberg News.
Rainey's comments came after Walmart reported another quarter of solid growth with sales increasing 4.5% at sores open at least a year for the quarter ending April 30. The results were better than expected, indicating that Walmart's strategy of winning market share through lower prices was paying off.
Still, the company warned that sales were mixed, with grocery and pharmacy holding strong while general merchandise dipped.
What happens next
Keeping in mind that past results are no guarantee of future success, Rainey cautioned that the effects of the Trump tariffs and the general turbulence in the global economy will be felt in store aisles soon.
Rainey said the range of outcomes is "pretty extreme" and the company is bracing for stronger effects in the coming months. Whatever happens next, Walmart will have fond memories of the first quarter, when many other retailers felt the pain intensely.
Procter & Gambler, Heinz and Southwest Airlines, among others, have reported mixed results for the first part of the year.
Predictions don't mean much when facing an upheaval of this magnitude, Rainey warned. "The magnitude of tariffs increases ... are so large that retailers can't absorb them by themselves," he said.
One bright spot is Walmart's online performance. The company turned a profit on its e-commerce efforts for the first time in Q1, perhaps foretelling the new profit center it's been trying to build for years.
Posted: 2025-05-15 13:11:30
