Walmart(US:WMT) Sou Hu Cai Jing·2025-05-17 00:30Core Viewpoint - Walmart is set to raise prices on certain products in the U.S. due to the impact of government tariff policies, which have led to increased costs that the company cannot fully absorb [1][3]. Group 1: Financial Performance - For the first fiscal quarter ending April 30, Walmart reported a net profit of $4.49 billion, a decrease of over 12% year-on-year [1]. - The CEO Doug McMillon indicated that the narrow retail profit margins make it impossible for Walmart to absorb all the pressure from the new tariffs [1]. Group 2: Price Adjustments - CFO John Rainey stated that the cost increases from tariffs have exceeded the capacity of retailers, and consumers are likely to see price hikes starting late May, with more significant increases expected in June [3][5]. - Rainey emphasized that the initial tariff levels proposed in early April are already too high for retailers to manage profit margins effectively, prompting a review of product categories and their price elasticity [5]. Group 3: Industry Implications - Analysts suggest that once Walmart begins to raise prices, other retailers may follow suit, indicating a potential industry-wide trend [6][8]. - JPMorgan's CEO Jamie Dimon warned of ongoing recession risks in the U.S., although the likelihood of a recession has been adjusted down from 60% to 50% by their economists [8][10].