Kristina Roberts
Walmart, one of the biggest stores in the US, has said that prices for some items will go up soon because of new taxes on imported goods, called tariffs. The company also did not share its expected profits for the next three months because of these uncertain changes in trade rules.
Even though Walmart’s sales in the US were better than expected in the first part of the year, the company is worried about how these tariffs will affect prices. Walmart’s Chief Financial Officer, John David Rainey, said in an interview with CNBC that shoppers will start seeing higher prices by the end of May or early June.
“We will do our best to keep our prices as low as possible, but because of these new tariffs, we can’t avoid raising some prices. Our profits are already small, so we can’t take all the extra costs ourselves,” said Walmart’s CEO, Doug McMillon.
Despite these challenges, Walmart still expects its total sales and profits for the full year (ending in January 2026) to grow. The company believes its earnings per share will be between 2.50and2.50and2.60, and sales will increase by 3% to 4%.
Walmart is an important company to watch because its performance gives an idea of how American shoppers are spending their money. The recent changes in trade rules, especially the taxes on goods from China, have made business more unpredictable.
In the first three months of the year, Walmart’s sales at stores open for at least a year grew by 4.5%. More people visited Walmart, and they also spent a little more on each trip. Customers bought more food like dairy products, fresh groceries, and personal care items. Experts had expected sales to grow by only 3.94%, so Walmart did better than predicted.
The company’s total sales for the quarter were $165.6 billion, which was just below what analysts had expected. However, Walmart’s online sales grew strongly—up 21% in the US and 22% worldwide. For the first time ever, Walmart’s online business made a profit for a full quarter.
Walmart’s adjusted profit was 61 cents per share, which was higher than the 58 cents experts had guessed. This good performance came after the US and China agreed to reduce some of their trade taxes for 90 days, which made businesses and investors happy.
Many US companies have become careful about predicting their future profits because of these trade changes. Shoppers are also being more careful with their money, trying to save on everyday items like food and household goods.
In April, surveys showed that American shoppers were feeling less confident about spending money. Also, the US economy shrank a little in the first part of the year, which made some people worry about a possible recession.
Walmart is famous for keeping prices low, which helps it compete with other stores. But because its profits are already small, it cannot always avoid passing extra costs to customers. The company expects its sales in the next three months to grow between 3.5% and 4.5%, which is slightly higher than what experts had predicted.
Even with these challenges, Walmart’s stock price went up by 3.5% before the market opened. Over the past year, the company’s shares have increased by more than 60%, showing that many investors still believe in its business.
The situation with tariffs and trade rules remains uncertain, so Walmart, like many other companies, is being careful about what it expects in the coming months. For now, shoppers should prepare for slightly higher prices on some items in Walmart stores soon.
