Overview

• Walmart announced it will raise prices on products like baby strollers, furniture, and toys starting late May to offset the 30% tariff on Chinese imports.
• President Trump criticized Walmart on Truth Social, urging the company to absorb tariff costs instead of passing them on to customers.
• Walmart CFO John David Rainey highlighted the challenges of managing tariff-driven cost increases using the retail inventory method (RIM), which complicates cost forecasting.
• The retailer is employing scenario planning to navigate tariff uncertainty and maintain its full-year sales and operating income guidance.
• Walmart’s stock dropped around 2% in pre-market trading following Trump’s public remarks, reflecting market sensitivity to the pricing strategy.