Walmart (WMT) shares rose about 2% premarket after the company reported mixed earnings and said it would hike prices to navigate President Trump’s tariffs.
America’s largest retailer has been seen as well-positioned to weather tariffs, as around 60% of its sales are in groceries, Yahoo Finance’s Brooke DiPalma reported. Its size also means it has leverage to negotiate with suppliers to keep prices low.
However, Walmart announced it would raise some of its prices due to tariffs.
“We will do our best to keep our prices as low as possible,” Walmart CEO Doug McMillon said in the release. “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.”
96.83
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+(0.99%)
At close: May 14 at 4:00:02 PM EDT
Walmart’s US same-store sales beat expectations with a 4.5% increase in the first quarter, led by strength in health and wellness and groceries. Here’s what the bellwether for retail reported on the top and bottom lines:
Walmart reiterated its conservative financial guidance for the year. It projected net sales to increase between 3% and 4%.