Walmart gets a lift from Trump's trade chaos — but warns price rises are coming

Core Insights - Walmart's first-quarter revenues reached $168 billion, marking a 4% increase year-over-year on a constant currency basis, with profits rising 3% to $7.3 billion, indicating the company's resilience in a challenging market environment [1] - The increase in US sales was driven by consumers anticipating price hikes due to new tariffs on imports from China and other countries, with foot traffic to Walmart stores increasing by an estimated 4.5% in April [2] - CFO John David Rainey indicated that consumers should expect price increases soon, stating that the magnitude of these increases is beyond what retailers and suppliers can absorb [3] Revenue and Membership Growth - Walmart reported significant growth in revenue from its membership programs, with global membership fee income increasing nearly 15%, and estimates suggest over 15 million Plus members [3] - The company emphasized its ability to manage product sourcing, with two-thirds of its US sales coming from domestic sources, positioning itself to handle market uncertainties effectively [4] Competitive Positioning - Historical trends suggest that during fluid market conditions, Walmart has successfully attracted customers from rival retailers, as seen during previous inflationary periods [5]