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New York - Walmart Says Higher Tariffs On China Goods Will Increase Prices For U.S. Shoppers

Published on: May 16, 2019 10:30 AM
By: Reuters
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Walmart's logo is seen outside one of the stores in Chicago, Illinois, U.S., November 20, 2018. REUTERS/Kamil Krzaczynski/File PhotoWalmart's logo is seen outside one of the stores in Chicago, Illinois, U.S., November 20, 2018. REUTERS/Kamil Krzaczynski/File Photo

New York - Walmart Inc said on Thursday that prices for shoppers will go up due to higher tariffs on imports from China as the world’s largest retailer reported its best comparable sales growth for the first quarter in nine years.

Walmart shares rose 1.4% to $101.30 in premarket trade.

U.S. President Donald Trump increased tariffs on $200 billion worth of Chinese imports to 25% from 10% last week. The move is widely expected to raise prices on thousands of products including clothing, furniture and electronics. China retaliated on Monday, though on a smaller scale.

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Walmart Chief Financial Brett Biggs told Reuters that higher tariffs will result in increased prices for consumers. He said the company will try to ease the pain, in part by working with suppliers’ “costs structures to manage higher tariffs.”

Biggs said the retailer has not seen signs of a slowdown in consumer spending, but he declined to comment on the health of the consumer in the near term.

Investors and analysts expect U.S. spending to slow this year against a backdrop of rising debt, tariffs and economic uncertainty.

U.S. retail sales unexpectedly fell in April as households cut back on purchases of vehicles and a range of other goods, reflecting a slowdown in economic growth after a temporary boost from exports and inventories in the first quarter.

Sales at Walmart’s U.S. stores open at least a year rose 3.4%, excluding fuel, in the quarter ended April 30. Analysts estimated growth of 3.1%, according to IBES data from Refinitiv.

Adjusted earnings per share increased to $1.13 per share, beating expectations of $1.02 per share.

Online sales rose 37%, slowing from the previous quarter’s 43% increase but was better than online sales growth at most of its brick-and-mortar rivals.

Total revenue was up 1% at $123.9 billion but lower than analysts’ estimates of $125.03 billion dragged down by currency impact and lower international sales. Excluding currency, revenue was up 2.5% at $125.8 billion.



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Read Comments (6)  —  Post Yours »

1

 May 16, 2019 at 11:39 AM Anonymous Says:

Avoid Walmart at all costs; they are not nice people, whether it is their cashiers, their "customer service" personnel, etc. Also, a lower socio-economic element (the tattoo, earring kind) frequents their stores.

2

 May 16, 2019 at 02:13 PM Anonymous Says:

To #1 Lots of people consider a bris a form of body piercing. Should we be judged by that?

3

 May 16, 2019 at 04:35 PM Educated Archy Says:

Reply to #2  
Anonymous Says:

To #1 Lots of people consider a bris a form of body piercing. Should we be judged by that?

No bec its not low life prost. Its religous. Body peircing is a low class eww thing to do. But I'll be glad to be judged about making an ois kodosh between me and the eibshter.

4

 May 16, 2019 at 04:41 PM Anonymous Says:

The problem is American today wants everything so needs to buy everything from China at rock bottom prices even though they are destroying the country they live in. Go to France and see where they buy mostly French cars. They have pride with their country. Americans especially youth; have no love for their country that gives them so much. They would see the country down the drain for an newer Apple phone

5

 May 16, 2019 at 05:18 PM Anonymous Says:

To #2- Are you meshuganah, or something? A bris is a permanent removal of an appendage, or the foreskin, which can cause health problems. It has nothing to do with these freaks who pierce various parts of their faces with jewelry (i.e. Dennis Rodman).

6

 May 17, 2019 at 10:12 AM Butterfly Says:

I have not bought a thing from Walmart in years and will continue doing so. I will also avoid buying things made in China. Hard but it is doable!!

7

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