Latest news with #JohnDavidRainey
New York Post
3 days ago
- Business
- New York Post
Walmart quietly jacks up prices — despite Trump's demand for retailer to ‘eat the tariffs'
Walmart has quietly been hiking prices on items ranging from toys to office supplies, with some markups reportedly climbing more than 100% — despite President Trump's demand for retailers to 'eat the tariffs.' Photos circulating online, particularly on the Walmart subreddit, have documented the dramatic price hikes since the White House imposed a 145% tariff on imports from China in early April, before lowering the levy to 30% last month. The price of toys, the bulk of which are made in China, were particularly impacted. 5 A fishing reel is on sale at Walmart for a whopping $83.26. Reddit/Majestickenny12 A 'Jurassic World' T. rex rose from $39.92 on April 27 to $55 by May 21 — an increase of nearly 38%. Price tracking site AisleGopher shows the same item cost $29.74 in November. A 'Baby Born' doll jumped from $34.97 in March to $49.97 in May, a roughly 43% rise, while a Lite Brite Magic Screen set moved from $14.97 to $21.97 (up nearly 47%). The popular Etch A Sketch jumped from $14.97 to $24.99 — nearly a 67% increase. The price on some office supplies also surged, with a roll of tape that previously sold for $4.24 soaring to $9.94, a 134% spike. Other notable hikes include a heating pad rising roughly 25%, from $19.98 to $24.96, and a fishing reel surging from $57.37 in April to $83.26 in May, a 45% increase. That same reel was listed for $51.12 as recently as mid-March, according to AisleGopher. 5 'Baby Born' dolls have seen prices rise by more than 40%. Reddit/Plus_Astronaut_420 The Post reached out to Walmart for comment. Walmart's Chief Financial Officer John David Rainey acknowledged the hikes and called them 'unprecedented,' according to Business Insider, which first reported on the backlash over the increases. 'We have always worked to keep our prices as low as possible and we won't stop,' a spokesperson told the outlet 5 The price of a 'Jurassic World' T. rex toy at Walmart rose from $39.92 on April 27 to $55 by May 21 — an increase of nearly 38%. Reddit/Nvalee 'We'll keep prices as low as we can for as long as we can given the reality of small retail margins.' The Arkansas-based retail giant posted profits of $15 billion-plus last year, according to The Post's Charles Gasparino, who last week reported that stores were not going to swallow the cost of tariffs for long. Trump has demanded that Walmart and other retailers 'eat the tariffs' rather than pass costs on to consumers, publicly rebuking the company after its CEO warned it may soon raise prices due to rising import levies. The Post reached out to the White House for comment, which deferred to comments made by Treasury Secretary Scott Bessent on Sunday. 5 The White House has touted what it calls encouraging economic indicators since President Trump rolled out sweeping tariffs. REUTERS Bessent told CBS's 'Face the Nation' that inflation is down despite concerns over tariffs. Last week, the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditure index, decreased to 2.1%, its lowest level in seven months. 'Thus far there have been no price increases,' Bessent said. 'Everything has been alarmist, that the inflation numbers are actually dropping. We saw the first drop of inflation in four years. The inflation numbers last week, they were very pro-consumer.' In a statement on Thursday, White House spokesman Kush Desai pointed to what he called encouraging economic indicators. 'Americans have now seen multiple expectation-beating inflation and jobs reports since President Trump took office, with the prices of essentials like eggs down an astonishing 61%,' Desai told The Post. 'The Trump administration remains committed to deploying a full suite of supply-side reforms including rapid deregulation, tax cuts, and domestic energy production to deliver economic relief for the American people.' 5 'We have always worked to keep our prices as low as possible and we won't stop,' a Walmart spokesperson said. AFP via Getty Images Retail experts caution that while tariffs are likely a factor in these hikes, they may not be the only reason for the increases. Companies adjust prices for a wide range of reasons — from supply chain disruptions to shifts in demand — and publicly listed prices do not necessarily reveal how much of the change is directly attributable to tariffs. Still, the timing of the hikes has renewed attention on Trump's trade war and its lingering effects. According to Walmart, about 60% of the products it sells in the US come from domestic suppliers. The company has spent years trying to reduce its dependence on Chinese imports. Despite that, analysts say it's nearly impossible for big-box retailers to fully shield themselves — or their customers — from the financial fallout. David Bellinger, a retail analyst at Mizuho Securities, told clients on Wednesday that he expects the broader impact of tariffs on consumer spending to remain relatively small — perhaps just a low-single-digit percentage. But for individual items, especially those sourced from China, the effect may be more pronounced.
Time of India
3 days ago
- Business
- Time of India
Photos of prices of many items at Walmart going up by 38% or more flood Reddit, Twitter and other social media platforms
Walmart, one of the world's largest retail giants, is currently facing a wave of public scrutiny as photos purportedly showing significant price increases – some as high as 38% or more – on various essential items flood social media platforms like Reddit and X (formerly Twitter). Tired of too many ads? go ad free now The viral posts highlight rising costs on groceries, household essentials, and electronics, fueling concerns about inflation and corporate pricing strategies. The photographic evidence shared by various buyers highlight shelf tags and product displays at Walmart stores with new, noticeably higher prices compared to previous weeks or months. Walmart price hike: Reason behind the increase in prices As reported by Business Insider, the Walmart price hikes are linked to supply chain disruptions , increased production costs and the recently imposed tariff policies. Some of the employees shared the images of price tags being swapped out, highlight a significant price hike over the past few weeks. Examples of price increases include: Jurassic Park T-Rex Toy – From $20 to $55 Fishing Reel – From $57.37 to $83.26 Great Value Cocoa Powder (8 oz) – From $3.44 to $6.18 Consumer backlash & Walmart's response Consumers are expressing frustration and dismay over what they perceive as aggressive price adjustments by the retail behemoth. Many social media posts include direct comparisons, showcasing the stark difference in pricing for the same products over a short period. Walmart's Chief Financial Officer John David Rainey acknowledged the price hikes, calling them 'unprecedented', but emphasized that tariffs and global economic conditions are playing a role. Walmart boycott Last month, Walmart witnessed a week-long boycott organised by The People's Union USA , the same group behind the weeklong protest in April. The advocacy group accuses Walmart of 'crushing small businesses' and 'underpaying employees', citing concerns over corporate greed , tax loopholes, and rising prices. Tired of too many ads? go ad free now The Walmart boycott for the second time is leading many shoppers to wonder about the potential implications for their purchasing habits and access to goods. According to the group's website, it aims to 'expose corruption and exploitation' and 'hold corporations accountable' for unethical business practices that have kept Americans 'divided, distracted, and struggling for decades.' 'We're using the one tool that always makes them listen, money,' said The People's Union USA on its website. 'Economic resistance is our frontline weapon. And behind that, we've got something they'll never understand: resilience, strength, and the will to endure. They raise prices, we stop spending. They ignore our voices, we cut their profits. They divide, we unite.' 'What we can do is hold these companies accountable for not paying their fair share of taxes, for price gouging and for inequality,' said John Schwarz, the group's founder. While the boycott aims to pressure Walmart into policy changes, it may also affect product availability and pricing. Some analysts suggest that short-term disruptions could occur, but Walmart's market dominance makes long-term effects uncertain.
Yahoo
6 days ago
- Business
- Yahoo
3 USA-Based Stocks That Can Be Great Buys Amid Tariff Risks
The companies listed here are all strong U.S.-based businesses with excellent fundamentals. Their tariff risks seem relatively low compared to other stocks. 10 stocks we like better than Walmart › Tariffs pose a big uncertainty for many businesses and investors for the foreseeable future. How big they will be and how long they will be imposed are two of the biggest unknowns, and that can make it difficult to predict how the stock market will perform. And with every week, the situation appears to be evolving. There are, however, some businesses which may be better positioned to deal with tariff risks than others. While they aren't entirely immune to the effects of them, three stocks which can potentially be great buys even amid all this uncertainty include Walmart (NYSE: WMT), Home Depot (NYSE: HD), and Microsoft (NASDAQ: MSFT). Let's take a look. Big-box retailer Walmart, which is based in Bentonville, Arkansas, has a lot of power with vendors to influence prices. And if that fails to do enough, it can always pass on costs to consumers. The retailer is a one-stop-shop for many consumers, allowing them to purchase groceries, other necessities, and discretionary items all in one place. And as a low-cost leader, consumers know that they'll find competitive prices at their local Walmart. That's why price increases at Walmart may not necessarily deter customers, but simply result in them buying fewer items. The company was able to pass along rising costs amid inflation and it says it needs to do so again now. CFO John David Rainey says that although tariff levels have come down since April, they are still difficult to absorb, noting that, "the magnitude of these increases is more than any retailer can absorb." For now, the business is still doing well. As of the period ending April 30, Walmart's sales rose by 2.5% year over year, to $165.6 billion. And its operating income also improved by 4.3%, to $7.1 billion. The stock is a bit rich in valuation, trading at more than 40 times its trailing earnings, but under the current macroeconomic conditions that premium may be justifiable as this may be one of the safer retail stocks to own right now. Home Depot is another retailer which may perform better than most this year. And unlike Walmart, it says it doesn't anticipate raising prices as a result of tariffs. The reason is that the company's suppliers can source goods from multiple countries, to minimize the impact of tariffs. As a result, the Atlanta-based retailer doesn't expect any country outside the U.S. to account for more than 10% of its purchases in the year ahead. That's a great example of the versatility that the business needs to manage challenging macroeconomic conditions. For the current fiscal year (which typically ends in late January or early February), the company anticipates decent single-digit sales growth of 2.8% and for its comparable sales to rise by 1%. The home improvement retailer's shares are down 7% this year but they could be due for a rally given the versatility the business is demonstrating right now. And with a price-to-earnings (P/E) multiple of 25, its valuation is modest and in line with the S&P 500 average. Another solid stock you can buy and hold today is Redmond, Washington-based Microsoft. The tech giant generates around 22% of its top line from product sales, with the vast majority of its revenue coming from its service and other segment. This means its tariff risk is fairly low in comparison to other companies. Many of Microsoft's products and services, including its office software, are also crucial for many businesses over the course of their day-to-day operations. In its April quarter, Microsoft's revenue rose by 15% (when excluding the impact of foreign exchange) to just over $70 billion. It posted double-digit growth in most categories, including Azure and other cloud services. Sales in that category rose by 35%. At a P/E of 35, Microsoft isn't a terribly cheap stock to buy but given its diversification and financial strength (it has generated nearly $97 billion in profit over the past four quarters), it can be one of the better growth stocks to buy today, whether you're looking for a stock in response to tariff volatility or an investment you can hang on to for years. Before you buy stock in Walmart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Walmart 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% 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 May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Microsoft, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 USA-Based Stocks That Can Be Great Buys Amid Tariff Risks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Donald Trump Tells Walmart (WMT) to ‘Eat the Tariffs'
Walmart's (WMT) stock and strategic outlook remain steady despite President Trump's directive for the retailer to 'eat the tariffs,' following Walmart's indication that it may raise prices in response to rising import costs. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Currently, tariffs include a 30% levy on Chinese goods and a 10% tariff on imports from most other countries—a significant concern for Walmart, given that around 60% of its imports come from China. With operating margins typically in the narrow 4% to 5% range, the company faces difficult trade-offs between absorbing costs or passing them on to consumers, challenging its low-price core value proposition. Nevertheless, Walmart's massive scale, strong brand, and strategic agility position it better than most in navigating these pressures, leaving me tentatively optimistic about the stock's resilience in the face of ongoing trade uncertainty. Walmart's latest quarterly results were solid, with revenue reaching $165.6 billion—a 2.5% year-over-year increase—and operating margins holding steady at 4.3%. However, the recent wave of global tariffs has injected uncertainty into the outlook, prompting the company to withdraw its second-quarter operating margin guidance. CFO John David Rainey signaled that price hikes are inevitable. While Walmart has reduced its reliance on Chinese imports from 80% in 2018 to around 60% today, China still supplies approximately 15% of its total merchandise—particularly in categories like electronics and toys. Starting in May, and escalating in June, Walmart will begin raising prices across most product lines, a move that drew sharp criticism from President Trump. Meanwhile, Chinese authorities are pushing back against suppliers asked to absorb tariff costs, leaving U.S. retailers like Walmart caught in the middle. Although recent negotiations between the U.S. and China led to a partial rollback of tariffs from previous highs, the current levels still present a significant cost burden, one that even a giant like Walmart is struggling to absorb. Walmart isn't alone in navigating the challenges posed by tariffs—retailers like Home Depot (HD) and Target (TGT) are also being forced to adapt. Home Depot has chosen a different path, opting to discontinue certain product lines and diversify its supply chain rather than raise prices. Target, on the other hand, is increasing prices on select items after lowering its sales forecast. Walmart, however, is pursuing a strategic approach aimed at maintaining its price advantage. By selectively absorbing some tariff-related costs, the company aims to preserve its competitive edge and potentially grow market share as rivals face similar pressures. With its scale, negotiating leverage, and deep financial reserves, Walmart is well-positioned to weather the current tariff environment—and may emerge even stronger in the long term. On Wall Street, WMT sports a Strong Buy consensus rating based on 28 Buy, two Hold, and zero Sell ratings in the past three months. Its average price target of $109.31 implies a 13.24% upside potential over the next twelve months. KeyBanc analyst Bradley Thomas maintains an Overweight rating on Walmart (WMT) with a $105 price target. He cites the company's strong first-quarter results amid a 'volatile backdrop and tariff noise.' He highlights Walmart's continued market share gains in grocery and its solid positioning to navigate broader macroeconomic challenges. Similarly, Wells Fargo analyst Edward Kelly has a Buy rating and a $108 price target on WMT. He praised the retailer's resilience and strategic agility, emphasizing its preparedness to manage the current tariff landscape through disciplined pricing, inventory control, and a clear focus on long-term financial objectives. In summary, Wall Street remains broadly confident in Walmart's ability to navigate the complex and uncertain tariff landscape under President Trump. While the burden of these tariffs will ultimately fall on American consumers, Walmart's scale, global supply chain expertise, and political leverage position it better than most to absorb the impact. Although its reliance on Chinese imports makes it somewhat more exposed, the entire retail sector is feeling the strain. Walmart's response carries broader implications—not just for retail, but for the U.S. economy as a whole. If a company of Walmart's size and sophistication struggles to weather these challenges, it raises serious questions about the resilience of smaller players. That said, investors can take comfort in Walmart's proven adaptability and strategic focus, even as some near-term volatility should be expected. For me, Walmart remains a cornerstone holding, well-equipped to emerge from this period even stronger. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
The Independent
22-05-2025
- Business
- The Independent
Walmart cutting 1500 corporate jobs in major restructure - days after announcing tariffs would increase prices
Walmart will cut 1,500 corporate jobs in order to trim expenses and speed up decision-making, just days after warning of price hikes due to Trump's tariffs. The billion-dollar corporation is set to reshape its global technology operations, e-commerce fulfillment in U.S. stores, Walmart Connect, and its advertising business, according to a person familiar with the plans who was speaking to the Wall Street Journal. In the wake of Trump's 'Liberation Day' in April, Walmart said it would do its best to keep prices low for as long as possible. Still, it could not guarantee that it would absorb the impact of tariffs on its products, even after the president demanded that the company do so. The WSJ source revealed that stark job cuts near the 1,500 mark and fresh new roles that align with the company's future goals were also anticipated. Speaking with the newspaper, Walmart CFO John David Rainey explained that, following the tariffs, prices of in-demand items such as strollers would rise. 'If you're a young family and you have a baby and you're coming home from hospital and you need to buy a car seat, that car seat typically costs $350. 'With a 30 percent tariff, it's going to be over $100 more now.' He said the impact would apply to many products that get imported into the U.S. from overseas. Over the weekend, President Trump complained that Walmart, the largest retailer in the U.S., was blaming his recent tariffs for 'raising prices' and said the company could 'eat' the additional cost of tariffs without passing them onto consumers. Other retailers have had to adjust to the tariffs, and Walmart's changes could set a precedent for competitors, who watch on in anticipation of the company's next move. 'What that does is stress the overall wallet for consumers to where they have less to spend on those other discretionary things and so they're spending more on the necessities,' Rainey added. Trump asserts his tariff plan is necessary to secure the U.S. with fairer trading policies, believing it will bring in billions of dollars and boost domestic manufacturing. However, the deal rollout caused chaos in global stock markets, fueled by fears of rising consumer prices, inflation, and a potential recession. Since then, the president has eased some of those tariffs, dropping China's 145 percent tariff to 30 percent and delaying global tariffs for 90 days as the U.S. seeks to make deals with other countries. In response to the president, a spokesperson for Walmart said, 'We have always worked to keep our prices as low as possible, and we won't stop. We'll keep prices as low as we can for as long as we can, given the reality of small retail margins.'
