Trump tariffs set to unleash double-digit price increases in some Walmart departments, says its CFO

Hold connected to your wallet portion walking into the usually affordable aisles of Walmart (WMT).

"Low prices is what we basal for, and we're going to support prices arsenic debased arsenic we tin arsenic agelong arsenic we can. But erstwhile you look astatine the magnitude of immoderate of the outgo increases connected definite categories of items that are imported, it's much than what retailers tin bear. It's much than what suppliers tin bear,” Walmart CFO John David Rainey said connected Yahoo Finance's Catalysts (video above).

“And truthful we'll enactment hard to effort to support prices low. But it's unavoidable that you're going to spot immoderate prices spell up connected definite items."

Rainey said increases volition beryllium noticeable aboriginal this month.

Added Rainey, "Well, if you've got a 30% tariff connected something, you're apt going to spot treble digits [in terms increases]."

The astir impacted areas for Walmart volition see babe strollers, furniture, and toys.

Read more: What Trump's tariffs mean for the system and your wallet

Walmart's earnings time was mixed.

First 4th income roseate 2.5% from the anterior twelvemonth to $165.6 billion, falling shy of Wall Street estimates for $166.02 billion.

Adjusted net per stock accrued 1.7% twelvemonth implicit twelvemonth to $0.61, beating estimates of $0.58. US same-store income besides bushed expectations with a 4.5% increase, led by wellness and wellness, and groceries.

But the institution did spot transaction maturation astatine its Walmart US stores weaken successful the 4th compared to trends past year.

And portion the institution reiterated its full-year EPS outlook of $2.50 to $2.61, it was mostly beneath expert estimates of $2.61. This contempt the institution beating net estimates by $0.03 for the archetypal quarter.

"Although expectations were precocious going into the quarter, we judge the operation of coagulated 1Q results and reiteration of yearly guidance tin determination the banal somewhat higher," Citi retail expert Paul Lejuez said successful a note.

Shares fell astir 3% successful aboriginal trading.

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email brian.sozzi@yahoofinance.com.

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