Navigating a challenged retail environment, Walmart managed to generate US$165.6 billion in global revenue to close out a strong Q1 and beat its take from a year ago by 2.5%. John Furner, CEO and president of Walmart US, attributes this result to 30% growth in toys, electronics and automotive products, as well as strong performance from its expanding health & wellness segment. 

But despite the strong first quarter, Walmart CEO Doug McMillon says price increases are inevitable because the big-box retailer will not be able to absorb all the pressure of the reduced 30% tariffs the US has levied on imported goods from China. Company leadership expects higher retail prices will begin rolling out later this month, continuing into June. 

To mitigate the impact of the tariffs, Walmart US is entering the second quarter with a 4.5% increase in inventory in order to sustain strong sales and stock levels for consumers. Last year alone, the retailer purchased more than US$296 billion in goods produced domestically, and it plans to increase this spend to US$686 billion by 2031. Walmart is also launching a Grow With US program to provide small stateside businesses with a stronger starting point to work with its merchants.

While most toycos have withdrawn their full-year guidance, Walmart is still confident it can deliver on its expectation to generate more than US$674.5 billion this year in net sales, representing an increase of 4% over last year.