Walmart Expects to Raise Prices in Response to Tariff Increases, Finance Chief Says
Walmart is working with suppliers to manage prices in the wake of the Trump administration’s tariff increase, from 10 percent to 25 percent, imposed last week on $200 billion worth of Chinese goods -- and the threatened $300 billion fourth…
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tranche of goods covering virtually all remaining Chinese imports not previously tagged -- but increased tariffs “will increase prices for customers,” Chief Financial Officer Brett Biggs said on a May 16 earnings call. The retailer continues to monitor tariff discussions, “hopeful that an agreement can be reached,” Biggs said. The company’s goal “is to always be the low-priced leader, and we will actively manage pricing and margins as warranted with our customers and shareholders in mind.” Walmart teams focused on tariffs are “executing appropriate mitigation strategies,” he said. Biggs told Reuters the retailer will look to ease the pain for consumers, in part by trying to obtain products from different countries and working with suppliers’ “costs structures to manage higher tariffs.” In Q1, revenue rose 1 percent vs. a year ago to $123.9 billion, tempered by currency headwinds, the company said. Walmart U.S. Q1 revenue was $80.38 billion. Traffic in U.S. stores, now called transactions, rose 1.1 percent, while Q1 tickets grew 2.3 percent. E-commerce sales were “robust,” at 37 percent growth, and contributed 140 basis points to the U.S. segment’s comp sales increase, Biggs said.