Walmart reported a jump in first-quarter earnings Thursday on increased US store sales and eCommerce growth, but warned that higher US tariffs could hit its business.
The world's biggest retailer, which has been unveiling new "omnichannel" retail ventures including a just-announced next-day delivery service in many US markets, pointed to increased US sales as evidence the strategy was working.
But executives joined a chorus of retailers who have warned about tariffs in the wake of the Trump administration's latest moves in the long-running US-China dispute.
President Donald Trump has started a process to impose new duties on about USD 300 billion worth of additional Chinese merchandise that cover virtually everything China sells to the United States and encompass household items such as clothing and appliances.
"We're going to continue to do everything we can to keep prices low. It's who we are," Chief Financial Officer Brett Biggs said on a conference call with reporters.
"However increased tariffs will lead to increased prices for our customers."
"On the international front, results are negatively impacted by losses at Flipkart, which we continue to believe is a very sound long-term investment in a compelling market."
O'Shea said the effect of tariffs on Walmart would be "limited" because of the extent of its food business and because the company "has the wherewithal both financially and via its vendor relationships to minimise the impact on both itself and its shopping base."
"Taxing Americans on everyday products like clothes and shoes is not the answer for holding China accountable."
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