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US shoppers made it through the summer with less tariff impact than expected — but that could start to change heading into the fall.
Walmart, the world’s largest retailer, said on its quarterly earnings call Thursday that tariffs are now hitting more of its imported merchandise than they were a few months ago.
“We’ve continued to see our cost increase each week, which we expect will continue into the third and fourth quarters,” CEO Doug McMillon said on the call.
The company made headlines — and drew the ire of President Donald Trump — when it said last quarter that tariffs were “too high” and would force it to hike prices on consumers.
CFO John David Rainey said the retailer ultimately saw lower markups than it expected for the second quarter and that any increases so far have been gradual.
Still, some shoppers seem to be feeling the squeeze and either skipping purchases or switching to lower-priced alternatives.
“Not surprisingly, we see more adjustments in middle and lower income households than we do with higher income households and discretionary categories,” McMillon said. “As always, our customers are aware, smart, and value-conscious.”
Even with the additional cost pressures, Walmart reported comparable sales growth of 4.6% with a 1.5% increase in transactions from last year and a 3.1% increase in average receipt.
The company also said the back-to-school shopping results indicate a strong holiday season ahead.
The post Walmart says more tariff-driven price hikes are coming this year appeared first on Business Insider.
