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By
Reuters API
Published
May 16, 2019
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Walmart says higher tariffs on China goods will increase prices for shoppers

By
Reuters API
Published
May 16, 2019

Walmart Inc said on Thursday that prices for shoppers will go up due to higher tariffs on imports from China as it reported overall revenue and online sales growth slowed in the first quarter.




U.S. President Donald Trump increased tariffs on $200 billion (155.96 billion pounds) worth of Chinese imports to 25 percent from 10 percent last week. The move is widely expected to raise prices on thousands of products including clothing, furniture and electronics.

Walmart Chief Financial Brett Biggs told Reuters that higher tariffs will increase prices for consumers but the company is working on mitigation strategies.

Sales at U.S. stores open at least a year rose 3.4%, excluding fuel, in the quarter ended April 30. Analysts estimated growth of 3.1%, according to IBES data from Refinitiv.
Adjusted earnings per share increased to $1.13 per share, beating expectations of $1.02 per share.

Online sales rose 37%, compared with the previous quarter's 43% increase.
Total revenue was up 1% at $123.9 billion but lower than analysts' estimates of $125.03 billion dragged down by currency impact and lower international sales. Excluding currency, revenue was up 2.5% at $125.8 billion.

 

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