- Wal-Mart Stores Inc.
- 15 May 2025 14:46:13
Source: Sharecast
Speaking to CNBC, chief executive Doug McMillon said: “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.”
The US chain, which sources much of its merchandise from overseas, including Mexico and China, also declined to provide a detailed profits forecast for the current quarter.
John Rainey, chief financial officer, confirmed full-year targets, including net sales growth of between 3% and 4%.
But he added: “Given the dynamic nature of the backdrop, and the range of near-term outcomes being exceedingly wide and difficult to predict, we felt it best to hold from providing a specific range of guidance for operating income growth and earnings per share for the second quarter.”
The update came as the retail giant, which has nearly 11,000 stores, posted first-quarter numbers. Revenues rose 2.5% in the three months to 30 April, to $165.5bn, while operating income rose 4.3% at $7.12bn.
At its US stores, underlying sales rose 4.5%, ahead of analyst expectations for a 3.7% improvement.
McMillon said it had been a “solid first quarter in a dynamic operating environment”.
US president Donald Trump announced a swathe of stringent tariffs worldwide on 2 April, upending global markets.
A number of countries, including China and the European Union, announced their own levies in response, leading to fears of an all-out global trade war.
However, on Monday Washington and Beijing agreed to cut levies for the next 90 days following a weekend of talks.
The US pledged to reduce tariffs on Chinese goods to 30% from 145%, while China said it would lower duties to 10% from 125%.