The costs of new tariffs are no joke

Core Insights - Walmart has successfully managed the impact of tariffs, resulting in increased sales and profits, with shares up 35% year-to-date [1][3] - Costco has adopted similar strategies to mitigate tariff impacts, including adjusting supplier relationships and buying schedules [4] - Smaller companies, like Orvis, are struggling under the current tariff environment, leading to significant operational changes, including store closures [5][6] Company Strategies - Walmart's CEO Doug McMillon indicated that the company has worked to keep prices low while managing inventory costs by sharing tariff burdens with suppliers [1][7] - Costco has also required suppliers to share the financial impact of tariffs and has adjusted its purchasing strategies accordingly [4][5] - Orvis has faced severe challenges due to tariffs, leading to the decision to close 36 locations by early 2026 [5][6] Financial Impact - Walmart's financial strength and sophisticated systems have allowed it to navigate tariffs effectively, benefiting both the company and its shareholders, including the Walton family [3] - Orvis has indicated that the unprecedented tariff landscape has significantly affected its business model, prompting urgent actions to mitigate costs [6][7] - Despite price increases, Walmart has managed to keep them minimal through strategic purchasing and supplier negotiations [7]