Walmart says U.S. consumers are under pressure from rising costs
NBC News • • general
Key Points:
- Walmart reported a 7.3% revenue increase to $177.8 billion in Q1, with U.S. same-store sales up 4.1%, driven partly by eCommerce growth and membership fees, led by higher-income households.
- Despite sales growth, Walmart issued quarterly guidance below expectations, reflecting consumer pressure amid rising costs for essentials like food, housing, and fuel.
- Inflation surged 3.8% in April, driven by the Iran war's impact on gas and airfare prices, with consumer prices outpacing wage growth for the first time since 2003, squeezing lower-income households.
- Walmart noted that higher fuel costs have offset some income gains and expects consumers to feel more pressure as tax refund benefits wane, highlighting ongoing economic challenges.
- Walmart is investing in technology and AI to compete with Amazon, which recently surpassed Walmart as the largest global company by revenue; meanwhile, potential tariff refunds could provide billions in benefits to major retailers.