Walmart has reported strong quarterly results, but warned of impending price increases due to rising tariffs that the retailer can no longer absorb. CEO Doug McMillon highlighted the challenges of maintaining low prices given the pressures from increased costs. CFO John David Rainey indicated that consumers might begin noticing higher prices by the end of the month, with more increases in June. While the U.S. and China have agreed to temporarily lower certain tariffs, Walmart's dependency on international goods, particularly from China and Mexico, continues to impact pricing strategies.
"Even at the reduced levels, the higher tariffs will result in higher prices," McMillon said on the call.
"We're wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb," Rainey told CNBC.
"Youâll begin to see that, likely towards the tail end of this month, and then certainly more in June," Rainey cautioned.
"Tariffs were still too high for the company to absorb the cost," Rainey stated during his interview.
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