By Arkansas Black Vitality Staff

May 26, 2025 – President Trump reacted angrily to Walmart’s first-quarter earnings report, in which the Bentonville-based retailer said it intends to raise prices later this month on some grocery items due to ongoing tariffs and the administration’s trade war with China.

During the company’s May 15 conference call with Wall Street analysts, Walmart CEO Doug McMillon thanked President Trump and Treasury Secretary Scott Bissett for progressing the trade negotiations with China. However, he said higher reciprocal tariffs on most countries most countries by the Trump administration will increase prices even at reduced levels.

“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,” said McMillon.

The Walmart chief executive further explained that, in addition to the US, the nation’s largest retailers’ other chief markets are China, Mexico, Vietnam, India, and Canada. Last year, he said Walmart purchased $296 billion in the US and committed in 2021 to adding another $350 billion in incremental US volume over the following 10 years.

“The merchandise that we import comes from all over the world from dozens of countries. Other than the US, the other large markets are China, Mexico, Vietnam, India, and Canada. China, in particular, represents a lot of volume in certain categories like electronics and toys,” McMillon explained. “All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact. The cost pressure from all the tariff impacted markets started in late April, and it accelerated in May.”

Later during the conference call, Walmart CFO John David Rainey said the northeast Arkansas retail conglomerate has modeled various scenarios on how the Trump tariffs will play out. However, he said, if the Trump administration restores the dramatically higher tariff levels, including the 145% levy on all Chinese products, the impact on Walmart’s financials “could be significant and even jeopardize our ability to grow earnings year over year.”

Two days after Walmart’s first quarter report, President Trump lambasted the Arkansas retailer on his Truth Social platform, telling the company to “eat the tariffs” after it reported quarterly earnings and revenue of nearly $4.5 billion billion and $165.6 billion, respectively.

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” said Trump. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”

Following the President’s rebuke, Walmart reiterated comments made during the conference call that it would seek to keep prices as low as possible and minimize the impact on consumers.

As noted, Walmart reported first quarter net income before adjustments of $4.48 billion or 58 cents per share, down 12.1% from $5.1 billion or 63 cents per share in the first quarter of 2024. Total revenues jumped 2.5% to $165.6 billion, compared to $161.5 billion in 2024.

On an adjusted basis, Walmart earnings were 61 cents, and same-store sales were up 4.4%, compared to 3.8% a year ago. Walmart’s same-store sales, a key metric for existing retail locations, include the performance of all U.S. namesake stores and Sam’s Club locations.

Walmart reported a total revenue of $112.2 billion from its U.S. stores, marking a 3.2% increase from a year earlier. Operating income rose 7% to $5.7 billion, primarily driven by the growth of the company’s online, pickup and delivery services and advertising revenue from its Vizio acquisition. According to FactSet, Walmart surpassed Wall Street expectations of 58 cents per share on revenue of $164.53 billion.

Given the solid first quarter results, Rainey reiterated the company’s 2026 outlook of net sales of $674.5 billion, adjusted operating income of $29.5 billion, and adjusted earnings of $2.51 per share.

“Given the dynamic nature of the backdrop, and the range of near-term outcomes being exceedingly wide and difficult to predict, we felt it best to hold from providing a specific range of guidance for operating income growth and earnings per share for the second quarter. With a longer view into the full year, we believe we can navigate well and achieve our full year guidance,” Rainey,

During its quarterly conference call, Walmart did not address possible planned boycotts of the Arkansas retail giant this summer for its DEI, labor and wage policies.

Walmart home office cuts 1500 jobs, expands new 440-acre headquarters campus

Separately, Walmart continues to make dramatic changes at its new 440-acre headquarters in Bentonville, including announcing 1,500 job cuts after the first quarter earnings report.

Earlier this year, McMillon also boasted about the Northwest Arkansas retailer’s new  corporate campus that opened in January. In addition to working spaces and the company’s new executive suites, the 12-office corporate village includes a 73,000-square-foot campus childcare facility, a state-of-the-art health and fitness center, a 12-restaurant food court, and a 200,000-square-foot great hall named after the company’s iconic founder, Sam Walton.

At the time, McMillion said, over 15,000 employees will work at the campus as offices open in phases through 2025. However, several media reports confirmed last week that the Arkansas mass merchandiser and grocery store giant was cutting 1,500 planned positions, representing about 10% of the company’s total workforce in Bentonville.

Meanwhile, Walmart continues to expand its headquarters community, recently announcing a new AC Hotel Bentonville and a long list of new retailers and restaurants, including the Flying Brewery, Arvest Bank, Yoyozuna, Cellini Nail Lounge, Jamba Juice, Wright’s Barbecue, Potbelly Sandwich Shop and several other tenants along 8th and J Streets.

Situated at the corner of the Walmart Home Office, the new hotel will offer overnight accommodations for Walmart associates and guests from around the globe visiting the company’s global headquarters, and it will also function as a meeting destination in the heart of the Bentonville community.

With 153 rooms, smart amenities, and flexible event space, the state-of-the-art hotel offers a design-forward space and rooms. At the heart of the AC Hotel is Falfurrias, a rooftop lounge named after one of Sam Walton’s favorite escapes in South Texas. The space pairs local flavor with elevated hospitality, offering a rotating menu of small plates, craft beverages, and panoramic views of Bentonville.