Walmart says it will raise prices due to tariff costs after posting solid first quarter sales

The profit of the first quarter of Wall Mart declined and said it should raise prices due to the high costs of the definitions implemented by President Donald Trump.

The country’s largest retailer recorded strong quarterly sales on Thursday and said it expects sales growth by 3.5 % to 4.5 % in the second quarter.

However, like many other American companies, no profit look at a quarter due to the chaotic environment, while constantly changing US tariff policies. The company maintained the instructions of the full year issued in February.

Walmart received $ 4.45 billion, or 56 cents per share, in the quarter ending April 30, a decrease from $ 5.10 billion, or 63 cents per share, in the same period last year.

The amended profits per share were 61 cents, expectations of 58 cents of industry analysts, according to FactSet.

Revenue increased by 2.5 % to 165.61 billion dollars, less than analysts.

Walmart sales in the US -comparable United States – those from existing physical stores and online channels – increased by 4.5 % in the second quarter, although this slowed down from a stumbling block by 4.6 % in the previous quarter, an increase of 5.3 % in the third quarter of 2024.

The stocks rose about 3 % before the opening bell Thursday.

The work was fueled by health and wellness elements as well as grocery stores. The company said that sales were weakened at home and good sports, which were compensated through strong sales of games, cars and children’s clothes.

Global e -commerce sales increased by 22 %, up from 16 % in the previous quarter.

Future sales have become a concern for all retailers for several reasons.

Many Americans have been retreating from spending because they did not want the economy, and inflation remains high. Trump’s tariff threatens China and other low -price model countries that is at the heart of Wall Mart’s success.

Trump’s import taxes, which threatened 145 % on Chinese goods, were reduced to 30 % in a deal announced on Monday, with some high tariffs when stopping for 90 days.

Retail and importers largely have stopped charging shoes, clothes, games and other elements with very high duties, but many of them will now resume importing from China in the narrow window, hoping to avoid excessive shelves in the fall. However, many retailers say they must raise the costs of customs tariffs. It is also preparing to increase the shipping costs that are fueled by an increase in companies to get their goods on ships to the United States

Walmart was built in hedges against some tariff threats. Two -thirds of the goods are obtained in the Walmart in the United States, where groceries lead much. Grocery stores represent approximately 60 % of the American Wall Mart works.

However, Walmart is not fortified and said he will have to raise prices even because it works to absorb the costs of definitions.

“We will do our best to maintain our prices as low as possible, but given the size of definitions, even at the reduced levels announced this week, we are not able to absorb all pressure given the fact of narrow retail margins,” CEO Duj McMelon said in a statement.

Walmart is among the first retail traders in the United States to report financial results and numbers can provide a hint regarding the mood of the American shopper and how definitions affect their business.

Earlier this month, Amazon announced the high profits and sales in the first quarter that won the expectations of analysts, confirming his grip on Internet shoppers looking for low prices and wide choice in an uncertain economy.

The Amazon brought foreign goods before the Trump tariff is valid. Amazon president and CEO of Amazon Andy Jassy told analysts by calling her profits that many third -party sellers did the same. Because of this step, a good number of third -party vendors have not yet changed their prices.