The executive said Thursday.
In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said that US shoppers will see prices rise at the end of May and certainly start to rise in June.
“We will do our best to keep prices as low as possible, but given the magnitude of the tariffs, even the levels of decline announced this week cannot absorb all the pressure given the narrow reality of retail margins,” CEO Doug McMillon said.
Walmart was the latest to avoid giving second-quarter profit guidance on Thursday due to uncertainty over Donald Trump’s tariffs that shook global trade.
However, retailers are keeping their forecasts for annual revenue and profits for fiscal year 2026. We expect annual sales to increase between 3% and 4%.
Walmart is home to the health of American consumers. The results provide clues as to how the industry is navigating the economic volatility brought about by on and off tariffs in several countries, including China.
This week, the US and China reached a trade contract for 90 days, resulting in the country being significantly reduced tariffs imposed on each other and widely supported by investors and businesses.
The trade war prompted many US companies to reduce or elicit annual expectations. This is a more cautious approach as consumers grow their budgets to buy everything from groceries to essentials at a cheaper price.
US consumer sentiment waned for the fourth consecutive month in April, signaling careful purchases while GDP signed for the first time in three years during concerns about the first quarter recession.
Walmart is known for its daily low-cost strategies for regular use essentials and groceries. Consolidated net sales for the second quarter are expected to rise between 3.5% and 4.5% compared to forecasts of 3.46% growth.
CFO Rainey said that operating income growth and earnings per share for the second quarter have withheld forecasts as the range of short-term outcomes expands and difficult to predict.
“I believe that if we look at the whole year long, we can navigate well and achieve year-round guidance,” he added.