Catenaa, Thursday, May 15, 2025- Walmart said that price hikes will have to come despite lowered China tariffs, the retailer said on Thursday, as it won’t be able to absorb all the price pressures.
“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 aren’t able to absorb all the pressure given the reality of narrow retail margins,” Doug McMillon President and CEO, Walmart said in a statement.
Walmart reported its April ending quarter results, posting a revenue growth of 2.5% year over year to $165.6 billion, as global ecommerce sales grew by 22% led performances by China, Flipkart, and Walmex.
“We delivered a solid first quarter in a dynamic operating environment. We’re serving customers and members in more ways, which is fueling our growth. We’re well-positioned, maintaining flexibility to navigate the near term while continuing to invest to create value for the long term.” McMillon said.
The retailer repurchased 50.4 million shares for $4.6 billion during the quarter, and the Walmart stock has gained by 7.3% year to date before the earnings release. The stock was down by 4.1% when the market opened on Thursday.
Adjusted earnings per share grew 1.7% year over year to $0.61, beating estimates of $0.58. US same-store sales also beat expectations with a 4.5% increase, led by health and wellness, and groceries.
Looking ahead, the Company issues guidance for the second quarter with net sales expected to increase 3.5% to 4.5%, with the outlook for fiscal year 2026 remaining unchanged net sales at $674.5 billion.
