(Reuters) – Walmart Inc. said on Thursday that buyers' prices would rise due to increased import tariffs from China, as the world's largest retailer reported its best comparative sales growth for the first quarter
US President Donald Trump has increased tariffs on Chinese imports by $ 200 billion to 25% from 10% last week. It is expected that this step will raise prices for thousands of products, including clothing, furniture and electronics. China reacted on Monday, albeit on a smaller scale
Walmart Chief Financial Officer Brett Biggs told Reuters that raising tariffs would lead to higher prices for consumers. He said the company would seek to alleviate the pain, partly by trying to get products from different countries and working with "cost structures of suppliers to manage higher tariffs."
An analyst at Moody's Charlie O'Shea said that the potential impact on Walmart and his purchasers (on tariffs) is limited to his food business. Her grocery operation, which includes fresh produce, brings about 56 percent in total revenue.
"We believe Walmart has the necessary financial and financial relationships to minimize its impact both on itself and on its trading base," he said.
Biggs' chief financial officer said that the retailer saw no signs of slowing down consumer spending, but he refused to comment on a healthy consumer in the near future.
Investors and analysts expect US spending to slow this year against growing debt, tariffs and economic uncertainty
US retail sales fell unexpectedly in April, when households reduced vehicle procurement and a number of other goods reflecting slowing economic growth after a temporary increase in exports and stocks in the first quarter.
his battle with Amazon.com Inc., offering one-day delivery on some markets without shipping, a few weeks after Amazon announced a similar plan. Walmart said that it would cost the company less than a two-day shipping, since orders will be delivered from warehouses closer to the client and arrive in a single box, rather than in several packages.
Analysts estimate an increase of 3.1%, according to Refinitiv's IBES.
Adjusted earnings per share increased to $ 1.13 per share, exceeding expectations of $ 1.02 per share
sales rose by 37%, slowing them by 43% from the previous quarter, but stronger than online growth. sales in most of its competitors. The company has forecasted growth of sales on the Internet by 35% this year.
Total revenue increased by 1% to $ 123.9 billion, But lower than analysts estimate for 125.03 billion dollars. Without currency, revenue rose 2.5% to $ 125.8 billion.
On Tuesday, Walmart said it was considering listing the stock market for its British Asda supermarket group, whose attempt to connect with its competitors J Sainsbury Plc was blocked by UK regulators last month
(Report by Nandity Bose in Washington, editing by Jeffrey Benco)