Walmart "not immune" to tariffs but vows to maintain low prices
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Walmart has been expanding its focus on automation in stores and clubs. Photo: Jay L Clendenin/Getty Images
DALLAS — Walmart officials pledged Wednesday to keep prices low despite uncertainty about the impact of President Trump's tariffs.
Why it matters: The world's largest retailer — whose brand is inextricably linked to low prices and affordability — is "not immune to some of the effects" in the short term, Walmart CEO Doug McMillon said.
- "We are positioned to play offense," McMillon said at the company's investment community meeting in Dallas. "Nothing about the current environment impacts our confidence in our business or our strategy."
- "We can't control some things. We're going to focus on what we can control," he said, noting that over the years Walmart has "adjusted country of origin" on products.
Zoom in: Walmart is maintaining its guidance for full-year sales and operating income growth, and said its Q1 sales outlook of 3% to 4% growth remains on track.
- "While the market may be a little nervous about consumer sentiment at this very moment, there's nothing that changes our view on our ability to deliver this framework," Walmart CFO John David Rainey said.
Yes, but: The company also said the "range of outcomes for Q1 operating income growth has widened" due to several factors, including "the desire to maintain flexibility to invest in price as tariffs are implemented."
- More than two thirds of products sold in the U.S. are "made, grown or assembled" in the country," Rainey said. "The third that we import comes from all over the world, but China and Mexico are the most significant."
Between the lines: Will Walmart be forced to raise prices as tariffs exert upward pressure on costs?
- "What history tells us is that when we lean into these periods of economic uncertainty, Walmart emerges on the other side with greater share and a stronger business," Rainey said. "And we don't expect this current period to be any different."
- "Our time-tested operating model emphasizes low prices to customers, made stronger with our focus on technology and automation," Rainey added.
- "We believe we play an important role in society to keep prices low," John Furner, Walmart's U.S. CEO, said.
What's next: Walmart said it is driving growth by improving experiences for customers and Sam's Club members, including leaning in on artificial intelligence and transforming its supply chain.
- "We'll soon be able to deliver to about 95% of U.S. households in just under three hours," Furner said. "So our goal is to build on that base and become America's favorite place to shop."
- David Guggina, Walmart U.S. chief eCommerce officer, also said, the company will be "testing ultra-fast delivery reaching customers in 30 minutes or less."
Editor's note: This story was updated with additional comments from Walmart executives.
