The American chain Walmart saw its consolidated net profit fall by 12.1 per cent to USD 4.49 billion (CZK 100 billion) in the first quarter. Sales rose by 2.5 per cent to USD 165.6 billion (CZK 3.7 trillion).
Expectations
This is slightly less than analysts had expected. The company announced its results today in a press release. Due to the impact of tariffs introduced by President Donald Trump’s administration, the company is planning to raise prices.
Walmart is the largest retail company in the US. It expects sales to grow by 3.5 to 4.5 per cent in the second quarter. However, like many other American companies, Walmart did not issue a profit forecast for the second quarter due to concerns about how customs policy will develop. Nevertheless, the company left its full-year outlook published in February unchanged.
Maintaining prices
Walmart CFO John David Rainey said in an interview with CNBC that the company will start raising prices for American customers this month. The price increases will take full effect in June.
‘We will do everything we can to keep prices as low as possible. But given the scope of the tariffs, even with the reduced level announced this week, we are unable to absorb all of the pressure given the reality of low retail margins,’ said CEO Doug McMillon.
Source: Czech Press Office
