New York – Walmart’s first quarter’s gain fell and said that prices should increase due to the highest costs of duty Implemented by President Donald Trump.
The largest retailers in the country registered solid quarterly sales on Thursday and said it awaits sales from 3.5% to 4.5% in the second quarter.
However, like many other US companies, it did not issue a profit perspective for the quarter due to the chaotic environment, and declared tariff policies constantly changed. The company maintained its full -year guide issued in February.
Walmart won $ 4.45 billion, or 56 cents per share, at the quarter ending April 30, below $ 5.10 billion, or 63 cents per share, in the same period last year.
The profits adjusted by action were 61 cents, exceeding the projections of 58 cents of the industry analysts, according to Factset.
Income increased 2.5% to $ 165.61 billion, just below analysts’ estimates.
Walmart’s comparable sales in the United States, those of established physical stores and online channels, increased 4.5% in the second quarter, although that slowed down an increase of 4.6% in the anterior quarter and a 5.3% increase in the third quarter of 2024.
The shares increased almost 3% before the opening bell on Thursday.
The business was fed by health and well -being, as well as edible. Sales were weaker at home and sports good, which was compensated by solid sales of toys, automotive items and children’s clothing, the company said.
Global electronic commerce sales increased by 22%, compared to 16% in the previous quarter.
Future sales have become a concern for all retailers for several reasons.
Many Americans have been withdrawing spending as they worry about the economy, and inflation remains high. Trump’s Tariffs on China and Other countries Threatens the low -price model that is in the center of the success of Walmart.
Threatened import taxes of 145% of Trump in Chinese products were reduced by 30% in a Agreement announced on MondayWith some of the highest rates in pause for 90 days.
Retail and importers had Great shipping shoes, clothing, toys and other items with such high tasks, but many now the importation will resume From China in the narrow window, hoping to avoid scarce shelves this fall. However, many retailers say that prices should increase tariff costs. And they are also preparing for higher shipping costs promoted by an increase in companies that fight to obtain their products in ships to the United States
Walmart has built hedges against some tariff threats. Two thirds of Walmart’s merchandise are obtained in the United States, with groceries that conduct much of that. The groceries represent approximately 60%, of the American business of Walmart.
Even so, Walmart is not immune and said he will have to increase prices even when he works to absorb tariff costs.
“We 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 cannot absorb all the pressure given the reality of the narrow retail margins,” said CEO Doug McMillon in a statement.
Walmart is among the first important American retailers in informing financial results and numbers can provide a track about the mood of the US buyer and how rates are affecting their business.
Earlier this month, Amazon announced higher profits and sales of the first quarter that overcame the projections of the analysts, underlining the control of the online giant on buyers looking for low prices and a wide selection in an uncertain economy.
Amazon brought foreign goods before Trump’s tariffs came into force. And the president and CEO of Amazon, Andy Jassy, told analysts during his earning call that many of his third party sellers did the same. And due to that movement, a good number of third party vendors have not yet changed their prices, he said.
