Walmart Elevates Forecast Amid Escalating Tariff Expenses
Walmart has upgraded its full-year sales and earnings forecast, despite the ongoing increase in tariff costs. The company acknowledges these costs are rising “each week” and will continue to persist through the second half of the year. The world’s largest retailer reported quarterly sales that exceeded expectations, with U.S. sales experiencing a growth of 4.6% in the latest quarter.
CEO Doug McMillon shared that the company is striving to keep prices “as low as we can for as long as we can,” while absorbing most of the increased costs from tariffs. The retailer has selectively raised prices on certain items, while implementing over 7,400 “rollbacks” – a significant increase of 2,000 from the previous quarter. McMillon highlighted that middle- and lower-income customers have shown more sensitivity to price increases, sometimes opting for alternatives or forgoing purchases altogether.
Despite the pressure from tariffs, Walmart has increased its full-year sales forecast to a growth of 3.75%-4.75%, up from the previous estimate of 3%-4%. This demonstrates the company’s resilience in challenging economic conditions.
Source: NPR