Latest news with #WMT
Business Insider
3 days ago
- Business
- Business Insider
Walmart Stock (WMT) Rises Despite Hiking Costs on Chinese Suppliers
Shares in U.S. retail giant Walmart (WMT) were up marginally today despite being slammed by Chinese suppliers for passing on tariff costs. Confident Investing Starts Here: Shoulder the Burden According to an article in the South China Morning Post, U.S. retail giants are demanding that their Chinese suppliers shoulder between 50% and 66% of the cost of U.S. import duties following President Trump's tariffs. According to some estimates Walmart imports 60% of its goods from China. The Post said that U.S. retailers have been locked in talks with Chinese producers for weeks over how to handle the additional costs caused by the trade war. This comes as U.S. firms face intense political pressure to keep prices stable. Indeed, responding to comments from Walmart that it would have to hike prices because of the extra cost of coping with tariffs, it was told by Trump that it should instead 'Eat the Tariffs.'. Since then, other U.S. retailer such as Costco (COST) have been more muted in their comments regarding tariffs. Dearer Dolls What will disappoint Chinese suppliers is the declaration from Walmart and other major U.S. retail groups that they would not bear the full cost of the tariffs when they asked their Chinese suppliers to resume shipments in late April. This is again according to industry sources who spoke to the Post. Back at home in the U.S. prices have already been hiked in Walmart stores, with pictures of in-store products going viral on social media. These have been shared by shoppers and even Walmart employees. These price rises include a $10 rise in dolls, a $25 rise in fishing reels, a $5 rise in tape and a $2 increase in Play-Doh. What Stocks are Most at Risk From Tariffs?
Globe and Mail
3 days ago
- Business
- Globe and Mail
Walmart Layoffs 2025: Should You Sell WMT Stock as Tariffs Drive the Retailer to Job Cuts?
Over the past year, retail giants have been navigating a perfect storm of rising costs, shifting consumer habits, and geopolitical headwinds, putting even the most resilient chains under pressure. While Walmart (WMT) has long been viewed as a bulwark against inflation thanks to its scale and low‐price positioning, escalating tariffs threaten to squeeze margins and force difficult decisions. In late May, Walmart announced plans to cut roughly 1,500 corporate jobs as part of a broader restructuring effort aimed at 'removing layers and complexity, speeding up decision‐making and helping associates innovate rapidly,' according to a memo from CTO Suresh Kumar and U.S. CEO John Furner. The layoffs, focused on its global tech teams, advertising arm, and e-commerce fulfillment operations, come alongside warnings that the retailer will have to raise prices if the highest‐impact tariffs remain in place. MarketWatch reports that the job cuts are 'another way to deal with tariffs.' For investors weighing whether to hold or sell WMT stock, these moves could signal both short‐term headwinds and long‐term efficiency gains. Here's what to consider before deciding. About WMT Stock Walmart is an American retail powerhouse operating supercenters, discount department stores, and extensive grocery outlets worldwide. Over the past few decades, the company has grown into the largest retailer by revenue, known for its everyday low-price strategy. Currently, it owns 10,771 stores and clubs across 24 countries. With a market capitalization of about $780 billion, Walmart's shares slid more than 22% from mid-February through early April as investors braced for tariff headwinds. Since hitting a low of $81 in early April, however, the stock has rallied by over 20% to around $97. Overall, the stock is up approximately 8% year-to-date, outperforming the broader market. In terms of valuation, Walmart is currently trading at premium levels. Its trailing price-earnings ratio of 38x is significantly higher than the sector median of 16.5x as well as its historical norms of 26x. This means investors expect above-average growth but have less room for error. Walmart Delivered Mixed Q1 Results On May 15, the retail giant reported its Q1 results for fiscal year 2026. Despite beating earnings estimates, it was the weakest quarter since 2022. Walmart posted adjusted EPS of $0.61 that topped the $0.58 consensus by 5%, while revenue of $165.6 billion fell just shy of the $165.84 billion forecast. Notably, inventory climbed nearly 4% year over year, marking the first time since early 2022 that stockpiles have outpaced revenue growth, a reversal of the retailer's typical business cadence. The e-commerce business reported revenue growth of 20% and turned profitable this quarter, thanks to higher delivery density, with U.S. and Sam's Club online operations in the black and international channels slightly unprofitable. Meanwhile, Walmart Connect, the company's advertising business, jumped 31% in the U.S. and 50% globally, highlighting its margin-rich contribution amid pressure on core retail margins. Looking ahead, management reaffirmed full-year fiscal 2026 guidance for 3%–4% sales growth and expects Q2 sales to rise 3.5%–4.5%. What Do Analysts Think About WMT Stock? Wall Street analysts remain highly optimistic about Walmart's growth prospects, as reflected in a consensus 'Strong Buy' rating. Of 38 covering the stock, 32 rate it a 'Strong Buy,' five a 'Moderate Buy,' and one a 'Hold,' with no 'Sell' recommendations. The average 12-month price target is $108.79, implying roughly 11% upside potential from here. The Bottom Line Walmart's 2025 corporate cuts and tariff-driven price hikes aim to shore up margins and boost efficiency, but risk straining staff and testing consumer loyalty. Strong e-commerce results, solid guidance, and widespread analyst support suggest WMT remains a buy-and-hold pick for those weathering near-term volatility.
Yahoo
5 days ago
- Business
- Yahoo
Walmart Inc. (WMT) Is The Insurmountable Wall In Retail, Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other stocks that Jim Cramer discusses. Walmart Inc. (NYSE:WMT) is one of the biggest retailers in America. It is also a frequent feature of Cramer's morning show. He believes that Walmart Inc. (NYSE:WMT) is the only brick-and-mortar retailer in America that can rely on its scale to fight any tariff-induced inflation in America. In fact, the firm's scale and its warning that prices might rise due to tariffs has landed it in controversy recently after President Trump warned Walmart Inc. (NYSE:WMT) that he was watching the firm for price increases. Here are Cramer's latest remarks about Walmart Inc. (NYSE:WMT): 'I am questioning, how well it's doing. It's not big enough. They're not opening a lot of stores, it's part of urban strategy that seemed just okay. There were issues even, you know, off of George Floyd, but they recovered very quickly. . . .But I think that that's more, if you might show some others, yeah Walmart's really good too, TJX is really good too. A manager standing in a hypermarket, pointing out items available for wholesale. In a recent Mad Money episode, Cramer had commented: 'Was Walmart really supposed to eat all the tariffs that had been put on the goods it carries? It sure sounds like it. Take a look at the President's posting this weekend, 'Walmart should STOP trying to blame tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, EAT THE TARIFFS, and not charge valued customers ANYTHING. I'll be watching and so will your customers'… Overall, WMT ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of WMT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
6 days ago
- Business
- Yahoo
Walmart Inc. (WMT) Fined for Letting Third-Party Sellers Ship Realistic Toy Guns to New York
Walmart Inc. (NYSE:WMT) has agreed to pay $16,000 in penalties and fees after an investigation by New York Attorney General Letitia James revealed the retail giant shipped realistic-looking toy guns to addresses in New York, violating state law. The probe found that third-party sellers on WMT's online marketplace sold and shipped at least nine imitation guns, colored black, dark blue, silver, or aluminum, to New York City, Westchester County, and Western New York, despite a state ban on such items. Niloo / New York law requires toy guns to be brightly colored or made from transparent materials to prevent confusion with real firearms, with violators facing $1,000 fines per incident. Between March 2020 and November 2023, at least 46 illegal imitation weapons were purchased through by New York consumers. Under the settlement, Walmart Inc. (NYSE:WMT) must ensure its third-party sellers cannot offer or ship banned toy guns to New York and must terminate sellers who violate the law three times. Walmart Inc. (NYSE:WMT) did not admit or deny the investigation's findings but stated it is committed to compliance. James emphasized that realistic-looking toy guns endanger communities and vowed to hold violators accountable. While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None.
Yahoo
6 days ago
- Business
- Yahoo
Walmart Inc. (WMT) Fined for Letting Third-Party Sellers Ship Realistic Toy Guns to New York
Walmart Inc. (NYSE:WMT) has agreed to pay $16,000 in penalties and fees after an investigation by New York Attorney General Letitia James revealed the retail giant shipped realistic-looking toy guns to addresses in New York, violating state law. The probe found that third-party sellers on WMT's online marketplace sold and shipped at least nine imitation guns, colored black, dark blue, silver, or aluminum, to New York City, Westchester County, and Western New York, despite a state ban on such items. Niloo / New York law requires toy guns to be brightly colored or made from transparent materials to prevent confusion with real firearms, with violators facing $1,000 fines per incident. Between March 2020 and November 2023, at least 46 illegal imitation weapons were purchased through by New York consumers. Under the settlement, Walmart Inc. (NYSE:WMT) must ensure its third-party sellers cannot offer or ship banned toy guns to New York and must terminate sellers who violate the law three times. Walmart Inc. (NYSE:WMT) did not admit or deny the investigation's findings but stated it is committed to compliance. James emphasized that realistic-looking toy guns endanger communities and vowed to hold violators accountable. While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None.
