Walmart Uses $2.9 Billion Tariff Refunds to Cut Prices as U.S. Comparable Sales Slow to 2.6%
Updated
Updated · CBS New York · Aug 20
Walmart Uses $2.9 Billion Tariff Refunds to Cut Prices as U.S. Comparable Sales Slow to 2.6%
3 articles · Updated · CBS New York · Aug 20
Summary
$2.9 billion in tariff refunds is being funneled into lower prices and customer investments, Walmart said, targeting grocery and general merchandise as inflation and fuel costs squeeze shoppers.
11,000 rollbacks in the second quarter—up from 7,200 in the first—extended July price cuts on items including beef, Coca-Cola and laundry detergent to defend Walmart's low-price position and win market share.
Nearly 30% higher second-quarter operating income was helped by the refunds, but U.S. comparable sales rose just 2.6%, down from 4.1% in the first quarter and the slowest growth in six years.
Shares fell 9% in morning trading as investors focused on the softer sales trend despite the profit boost.
About $100 billion in IEEPA tariff refunds had been returned by July 31 after the Supreme Court struck down Trump-era tariffs in February, opening the way for payouts to Walmart and other companies.