Walmart Battles Tariff Impact with Strategic Price Adjustments Amid Sales Growth

Walmart's quarterly profits decreased due to tariffs enacted by President Donald Trump, prompting the retailer to plan price increases. Despite robust sales and a 22% rise in global e-commerce, future sales are concerning retailers as tariffs on China challenge Walmart's low-price model. The retailer plans strategic adjustments to navigate these challenges.

Walmart's profit dipped in the first quarter as tariffs imposed by President Donald Trump pushed costs up, forcing the retail giant to consider hiking prices. Despite registering strong quarterly sales, with a projected growth of 3.5% to 4.5% in the next quarter, Walmart avoided releasing a profit outlook amid the turbulent tariff climate.

The company reported earnings of USD 4.45 billion (61 cents per share), down from USD 5.10 billion the previous year. However, revenue rose by 2.5% to USD 165.61 billion. Health, wellness, and grocery sales buoyed performance, compensating for weaker sales in other categories. Notably, global e-commerce sales soared by 22%.

Amid ongoing trade uncertainties, Trump reduced 145% import tariffs to 30%, temporarily easing pressures on retailers like Walmart, which relies on the low-price model for success. Despite the hedges Walmart has built, the company anticipates raising prices to absorb some tariff costs, highlighting the broader economic challenges impacting consumer spending.

(With inputs from agencies.)