Walmart Reports Solid Sales but Cautions Tariffs Will Raise Prices

Everyday low prices are going to get a bit steeper.

Walmart reported another quarter of solid sales on Thursday, but the retail giant, known for its low prices, cautioned that President Trump’s tariffs would push the company to start raising prices soon.

“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,” Doug McMillon, Walmart’s chief executive, said on a call with analysts on Thursday.

Walmart, the largest retailer in the United States, said sales at its U.S. stores rose more than 3 percent, to $112 billion, in its most recent quarter, which ran through April. The company’s e-commerce sales jumped more than 20 percent, with the fast-growing segment recording its first-ever profitable quarter.

The retailer kept its full-year financial forecast unchanged from its previous projection in February, with revenue expected to increase 3 to 4 percent this year. Walmart, however, refrained from projecting profits for its current quarter as tariff policies and pricing decisions remain in flux. Many other large companies have recently scrapped their forecasts, saying it was too difficult to make predictions under the Trump administration’s on-again, off-again tariff policies.

Even as Walmart’s sales remain strong and its full-year projections hold steady, executives said tariffs were weighing on the company and would lead to higher prices. Mr. McMillon said that in some cases, the company would maintain prices “despite the tariff cost pressure,” but emphasized that “the higher tariffs will result in higher prices.”

Shoppers could see the uptick as soon as the end of this month, John David Rainey, Walmart’s chief financial officer, said in an earlier interview with CNBC.