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Walmart Employees Sound the Alarm As Prices Soar

Walmart Employees Sound the Alarm As Prices Soar

Yahoo4 days ago

Walmart is raising eyebrows and prices, as shoppers and employees alike document noticeable price hikes on the retailer's shelves. These increases come in the wake of tariffs, which have forced Walmart, and many other companies, to adjust costs to maintain margins.
Photos of price increases are circulating online, especially on Reddit, where users have posted images showing hikes of up to 45 percent. Newsweek reported one notable example includes a Jurassic World t. rex toy, which jumped from $39.92 in April to $55 by late May. 'Just crazy to see happening in real-time,' wrote one user.
Another user shared a Baby Born doll that saw its price rise from $34.94 to $49.97, while a left-handed fishing reel spiked from $57.37 to $83.26—an increase of 45 percent. Even pantry staples haven't been spared: a Reddit post noted cocoa powder that rose from $3.44 in May 2024 to $6.18 in April 2025.
Walmart's leadership hasn't shied away from acknowledging the impact. CEO Doug McMillon said last month, 'We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins.'
The toy industry, in particular, has been hit hard. Many manufacturers rely on imports from China, and the 10 percent tariffs are squeezing costs. When asked about the rising prices, Trump offered a characteristically blunt response: 'Well, maybe the children will have two dolls instead of 30 dolls, you know.'Walmart's strategy moving forward appears focused on maintaining momentum while mitigating margin pressure. Chief Financial Officer John David Rainey noted, 'Our strategy is clear, our top-line momentum is strong, and we are flexing into our advantages to protect margins as we grow.'
For shoppers, this means higher prices at checkout—potentially more visible as Walmart continues to raise prices on both everyday essentials and popular items. As the retail giant navigates tariff-fueled costs, consumers may need to adjust expectations and budgets alike.Walmart Employees Sound the Alarm As Prices Soar first appeared on Men's Journal on Jun 2, 2025

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Dollar General Stock Just Popped, but Is the Worst Really Behind It?
Dollar General Stock Just Popped, but Is the Worst Really Behind It?

Yahoo

time23 minutes ago

  • Yahoo

Dollar General Stock Just Popped, but Is the Worst Really Behind It?

Dollar General is starting to benefit from more affluent customers trading down on their shopping choices. However, its core customer base remains under pressure. The stock, meanwhile, is no longer in the bargain bin after a strong rally. 10 stocks we like better than Dollar General › Dollar General (NYSE: DG) has struggled in recent years, as inflationary pressures hurt its lower-income consumer base. However, the stock staged a strong rally following its fiscal first-quarter earnings report. As of this writing, it is up 50% in 2025. Let's take a closer look at its most recent earnings report and commentary to see whether this rally is sustainable or if the worst is not really behind it just yet. On the surface, tariffs would seem to be a big negative for a company like Dollar General. After all, the retailer's core customer base was already feeling pressure from higher prices due to inflation, and it looked like it was losing share to big-box price leader Walmart (NYSE: WMT). However, the company has begun to see more higher-income consumers frequent its stores in search of value. The retailer said it plans to minimize the impact of tariffs on its gross margins as much as possible without raising prices, although it could increase prices as a last resort. It plans to do this by working with vendors to cut costs, moving some manufacturing to other countries, and tweaking its product lineup by making changes or swapping out certain items. It noted that a mid- to high-single-digit percentage of its overall purchases are directly imported from China, but about double that percentage comes indirectly from the country. The inroads with higher-income consumers contributed to a 2.4% increase in same-store sales in the quarter. While traffic fell by 0.3%, its average checkout ticket rose by 2.7%. Growth came from gains in the food, seasonal, and home & apparel categories. Same-store sales is a very important metric for Dollar General, as it has said in the past that it needs to grow its comparable-store sales by around 3% for it to leverage its expenses and grow its earnings. However, the composition matters, and growth from high-margin areas, such as seasonal items, helped power its earnings higher. This appears to be largely a reflection of higher-income consumers shopping at its locations, as well as its efforts to improve the customer experience and offer better merchandising in categories such as seasonal decor and home items. The company also said that its newer pOpshelf store concept -- which is meant to provide a fun and affordable shopping experience with a focus on home goods, seasonal decor, and party supplies -- performed well, exceeding expectations. Overall, Dollar General's revenue rose 5% year over year to $10.4 billion, while its earnings per share (EPS) jumped 8% to $1.78. That was well ahead of the analyst consensus of $10.3 billion in revenue and adjusted EPS of $1.48. Gross margin increased 78 basis points to 31%, helped by lower shrink and higher inventory markups. Shrink is the amount of merchandise that gets lost, damaged, spoiled, stolen, or just generally can't be sold, and the company has been working hard to improve this metric. Looking ahead, Dollar General raised its full-year guidance. It now expects revenue to grow between 3.7% and 4.7%, with same-store sales increasing between 1.5% and 2.5%. That's up from a prior outlook of revenue growth of 3.4% to 4.4% on comparable-store growth of 1.2% to 2.2%. Meanwhile, it raised the low end of its full-year EPS guidance to a range of $5.20 to $5.80, up from a previous forecast of between $5.10 and $5.80. It said that the guidance assumes that current tariff rates remain in place. Metric Prior Guidance Current Guidance Revenue growth 3.4% to 4.4% 3.7% and 4.7% Same-store sales growth 1.2% to 2.2% 1.5% and 2.5% Earnings per share $5.10 to $5.80 $5.20 to $5.80 Source: Dollar General. The company is also looking to add 575 new store openings in the U.S. this year and up to 15 in Mexico. Dollar General appears to be benefiting from the trade-down effect this year. This is something Walmart has been experiencing for a while, but something dollar stores like Dollar General had previously been missing out on. It was only last year that these companies were talking about how the current environment was one of the most difficult periods in their histories. And for dollar stores' core customer bases, things may actually be worse now with tariffs than they were last year. As such, whether Dollar General can continue to turn the corner likely depends largely on whether it can keep the higher-income customers that have begun to visit its stores and continue to attract new ones. Right now, the company is seeing these new customers visit more often and spend more money per visit. Its remodeling efforts, along with initiatives like its mobile app and own same-day delivery service and partnership with DoorDash, are also likely helping attract more affluent consumers. From a valuation perspective, the retailer now trades at a forward price-to-earnings (P/E) ratio of 20 based on analyst estimates for fiscal year 2025 (ending January 2026). That valuation shows the stock is no longer in the bargain bin. While Dollar General has made a lot of progress -- with its core consumer still very stressed -- I don't want to chase this rally at its current valuation. Before you buy stock in Dollar General, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar General wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash and Walmart. The Motley Fool has a disclosure policy. Dollar General Stock Just Popped, but Is the Worst Really Behind It? was originally published by The Motley Fool Sign in to access your portfolio

Elon Musk's feud with Donald Trump is hugely damaging to Tesla but don't expect any action from the board
Elon Musk's feud with Donald Trump is hugely damaging to Tesla but don't expect any action from the board

Yahoo

time29 minutes ago

  • Yahoo

Elon Musk's feud with Donald Trump is hugely damaging to Tesla but don't expect any action from the board

How should a corporate board respond to a CEO publicly insulting and shaming a sitting president? It's not a question that most need to consider, since few chief executives dare to directly criticize the White House. When CEOs do speak out against a federal directive, their messages are usually delivered behind closed doors, or in a collective open letter. But this week, Elon Musk changed all that and forced the issue in a prolonged public spat with Donald Trump. The pair had a much-anticipated falling out over Trump's budget, also referred to as the 'big beautiful bill,' on Thursday, which quickly got personal. Musk asked his social media followers if it was time to create a new political party, said that Trump's tariffs would cause a recession, and even claimed that Trump's name was in government documents about Jeffrey Epstein, the convicted sexual offender. 'That is the real reason they have not been made public,' Musk wrote. The feud has already been costly for Musk and his many businesses, including Tesla. The automaker's shares took a tumble as the back-and-forth took over the news cycle, dropping 14% in on Thursday, and costing shareholders $150 billion. Now analysts warn that feuding with Trump could cost Tesla billions, considering that Trump could repeal electric vehicle tax credits and other measures that have boosted Tesla's earnings. The company could also face increasing regulatory obstacles around its autonomous driving vehicles, the technology that is meant to drive Tesla's future and has been cited by stock watchers as a reason for the stock's sustained eye-popping performance. Tesla bull and Wedbush analyst Dan Ives seemed to speak for investors early on Friday when he wrote in a research note: 'This needs to calm down.' At a regular company, there's a solid chance that the events of the last few days would spur a board to dismiss a CEO. But will the Tesla board fire Musk to protect public shareholders from potential damages? 'They should,' Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware, told Fortune. 'But they won't.' The Trump-Musk spat is just the latest in a series of events that have forced the question of what role Tesla's board actually plays in the company. 'Over the years, Musk's behavior has become more outrageous,' says Elson. 'The board's lack of response makes you wonder, 'Who are these people? Why are they there?'' It has long faced criticisms for being too close to Musk, and therefore willing to overlook numerous management issues. For instance, it famously approved Musk's much-disputed 2018 pay package for $56 billion, and has silently witnessed a year of high-profile divisive behavior from the chief executive that has led to public protests and customers distancing themselves from the company. And recent allegations about Musk's drug use echo reports that have surfaced in the past without putting Musk's role at risk. There are a few contributing factors as to why that is. Musk is a controlling shareholder in Tesla, where he holds 22% of the voting power, making it extra challenging for board members to have the votes needed to force him out. The board is also in a tough position in that firing Musk could tank the stock, considering that his name is so closely associated with the company. Many directors also have particularly close ties to Musk. That includes his brother Kimbal Musk, an entrepreneur and restaurant owner, and Joe Gebbia, a cofounder of Airbnb and a friend of Musk's. There are no car industry or green energy CEOs in the group, as one might expect at a typical EV company. The directors are also paid very well. This year, a Delaware court ordered the board to give back more than $900 billion in pay after finding it had paid itself too handsomely. Robyn Denholm, Tesla board chair since 2018, earned $600 million, far more than people with the same position at other companies. The court found 'the compensation was so significant, it made it really almost impossible for them to be independent directors,' says Elson. 'It is difficult to get a man to understand something when his salary depends on his not understanding it,' says Nell Minow, a corporate governance expert, quoting Upton Sinclair. 'That's this board.' To be sure, this year, there were signs earlier this year that Tesla's directors were taking more control over the company's governance. Last month, the Wall Street Journal reported last month that the board had begun looking for a successor and selected a search firm to assist them. It also reported that the board had met with Trump weeks before he announced he would be spending less time at the White House. It seemed that between the backlash against Tesla provoked by Musk's focus on Washington, and Tesla's shrinking share price, finally pushed the board to act. But the board denied the report outright, with Denholm calling it 'absolutely false.' Even considering his own predilection for conflict, Elon Musk's latest squabble is in a category of its own. But board experts agree that to expect action from the Tesla board is misguided. 'There have been so many 'Now the board has to do something moments,' and they have failed every time,' says Minow. 'I no longer feel that there is such a thing as 'Now they have to do something.'' There are technically ways that shareholders could move the needle if they wanted Musk out. They could vote directors off the board via shareholder proxy votes, and hope that new directors would fire Musk. Or they could try to sue the board for not kicking Musk to the curb when he put the brand at risk and split his focus between Washington and Tesla. But a shareholder who wanted to do that would need to own up to a 3% stake in the company, points out Ann Lipton, associate dean for faculty research at Tulane University's Law School, and governance laws make it all but impossible to do. 'No shareholder is going to be able to show that this board is acting in bad faith by failing to replace Musk as CEO, which is really the level that they'd have to show,' she said. It's still theoretically possible that a Tesla board director could try to bring about change by suggesting Musk go. But they would have to make peace with potentially losing their roles, says Elson. 'They would say, 'Look, I will vote to move him along. And if I lose, I leave. I can't do this anymore,'' says Elson. Whether they'll do that depends on whether they're people of principle, he added, or 'people of convenience.''We'll have to see,' he said. This story was originally featured on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

US Close to High-Speed Rail Breakthrough
US Close to High-Speed Rail Breakthrough

Newsweek

timean hour ago

  • Newsweek

US Close to High-Speed Rail Breakthrough

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. When the great and the good of the American high speed rail industry gathered in Washington, D.C. over May 13-15 for the U.S. High Speed Rail Association's (USHSR) 2025 annual conference, there was tremendous excitement tinged with anxiety. Several attendees told Newsweek they believe the U.S. could be on the verge of a high-speed rail breakthrough, setting the stage for the kind of comprehensive national system enjoyed in the likes of China, Japan and Western Europe. Ray LaHood, a Republican who served as Transportation Secretary under President Obama from 2009 to 2013, said if one of the two high-speed rail lines currently under construction is completed, it will prove "wildly popular" and boost support for high-speed rail across the nation. Other insiders agreed, but argued permitting reform and more explicit federal support will be needed first. There has been concern over the Trump administration's attitude toward high-speed rail. The conference took place one month after Transportation Secretary Sean P. Duffy announced $63.9 million in funding for a proposed Dallas to Houston route had been scrapped, and amid rumors that the California High Speed Rail line under construction between Los Angeles and San Francisco could lose federal support. This week, Duffy said there is "no viable path" to complete California High Speed Rail on time or on budget and warned the federal government could pull billions in funding. State of U.S. High-Speed Rail At present there aren't any high-speed rail networks—defined by the International Union of Railways (UIC) as operating at a minimum of 250 kilometers per hour (155 miles per hour) along specially built tracks—that are operational in the U.S. This compares unfavorably with the likes of Spain, Japan and France, which have around 2,460 miles, 1,830 miles and 1,740 miles of track respectively currently in use. Former Transportation Secretary Ray LaHood predicted the first high-speed rail line in the U.S. will be "wildly popular." Former Transportation Secretary Ray LaHood predicted the first high-speed rail line in the U.S. will be "wildly popular." Photo-illustration by Newsweek/Getty/Canva Most impressively, China, the chief geopolitical rival of the U.S., has gone from having virtually no high-speed rail lines to nearly 30,000 miles over the past couple of decades. Construction is currently underway on two high-speed rail lines in the U.S.—Brightline West, which will connect Las Vegas to Southern California, and California High Speed Rail between Los Angeles and San Francisco. A range of other projects have been proposed around the country, including plans to link Boston, New York and Washington, D.C. in the Northeast; Dallas, Houston and Fort Worth in Texas; and Chicago to East St. Louis in Illinois. Obstacles When asked why the U.S. had failed to build a high-speed network comparable to other advanced economies, industry experts told Newsweek there are major issues with permitting, financing and cross-party political support. California High Speed Rail has sparked particular controversy, with its cost ballooning from $34 billion to over $128 billion, while the completion date has been pushed back. Terry Hynes, an attorney specializing in rail infrastructure projects, argued planning issues in particular have bottled up capital investment. He is currently part of a team investigating how the permitting process could be sped up for USHSR. Addressing Newsweek, he said: "I've been in the business 46 years, making railroads, and I've been frustrated as hell representing the high-speed just takes forever. And there's private money that could be brought in. Wall Street's got a lot of money looking for infrastructure investments. "This is a wonderful infrastructure investment, the trouble is they see those permitting times. Eight years for environmental review, then you build for four years and in year 13 you're finally going to see some money. Nobody's going to invest in that." Former Obama era Transportation Secretary Ray LaHood speaking at the U.S. High Speed Rail Association's 2025 annual conference. Former Obama era Transportation Secretary Ray LaHood speaking at the U.S. High Speed Rail Association's 2025 annual conference. James Bickerton/Newsweek Hynes added: "The biggest issue to my mind is this permitting issue. The review period takes so long, the cost goes up and the more expensive it is for people doing a cost-benefit analysis, the analyses looks less beneficial." Brandon Wheeler, a senior program manager at the North Central Texas Council of Governments, a local government-based voluntary association, said a lack of national leadership has undermined high-speed rail construction across the U.S. Speaking to Newsweek, he said: "We don't have a national single point of leadership on that single point of leadership it really is a little bit hopscotch and we're making the best we can of it. "Until there is, like the interstate highway system, there's a national vision to create and you have a vision around the ability to move military and goods and those kinds of things. Until our airports get bad enough, until our roads get bad enough, until people have this massive outcry and we're able to concentrate them on something, we're going to have to find what that single vision is to rally around or we will fall behind the rest of the world." LaHood agreed, saying: "I think the success of these projects in Europe and Asia is largely due to the national government making investments but then encouraging the private sector. Once the national government makes a commitment, it's easier for the private sector then—they know it's going to be a stable project, they know their investment is going to be good." If You Build It They Will Come In 2023, Brightline, the first privately built rail line in the U.S. to open in nearly a century, began operations between Miami and Orlando in Florida and has since seen passenger numbers surge. While Brightline runs below the high-speed standard, LaHood said it showed Americans are ready to embrace new rail networks, and argued one successful project in the U.S. could turbocharge the whole industry. "If you look at the Brightline project in is wildly popular," he said. "They're putting more and more trains on that track every day because people like the idea that they don't have to get on the I95 and they don't have to travel on highways that are crowded with big trucks and cars... The U.S. High Speed Rail Association's 2025 annual conference in Washington, D.C. The U.S. High Speed Rail Association's 2025 annual conference in Washington, D.C. James Bickerton/Newsweek "If you build it they will come, if you build it it will be successful and I think that will be the case with Brightline West, Las Vegas to L.A., and I think it will be true San Francisco to L.A. I think they will be wildly popular. I really believe at this point if you build it they will come and the proof of that is Europe and Asia—their trains are wildly popular." Speaking to Newsweek, Portland Mayor Keith Wilson, who is advocating for a "Cascadia" high-speed rail line linking the city to Seattle in Washington and Vancouver in British Columbia, said: "Our system continues to be compacted and stagnant. "The great cities from around the world are all tending to go towards high-speed rail and we need an opportunity to unlock our economic renaissance, which is what's missing in our country right now, and high-speed rail would move us forward and get us completing again with the world." Trust Fund A number of industry insiders told Newsweek the formation of a federal government trust fund could provide the financial muscle for a major U.S. high-speed rail expansion. Asked what one development would most speed up U.S. high-speed rail, Jim Derwinski, executive director of Chicago rail system Metra, replied: "A trust fund so it's national, it's bipartisan so it doesn't change from administration to administration and it can be supported through the states as a national effort. "If you're going to build something, to compare it to Europe and Asia right now, it's got to have a national campaign right now." Arthur Sohikian is executive director of High Desert Corridor, a proposed high-speed rail line that would link Brightline West to the California High Speed Rail line. He expressed a similar view to Derwinski, telling Newsweek: "We have to energize the public to make that been trying to get a trust fund for rail since I started my career, it seems. "For whatever reason why the politicians won't grab onto that and won't do that, especially when you realize the Highway Trust Fund keeps diminishing as cars get more efficient, we're paying less in gas taxes, that fund is have to invest in this infrastructure as a nation, and until that happens, seriously, we're all going to be trying to do our little pieces." The U.S. High Speed Rail Association paid travel and hotel expenses for Newsweek reporter James Bickerton to attend its 2025 annual conference.

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