Consumer IPOs from Snap to Uber have been disappointing and serve as a reminder that private investors are making all the money.Technologyread more
The company's comments Friday come after the White House said U.S.Trade Representative Robert Lighthizer will "address the threatened impairment" of national security from...Autosread more
China's currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it's signaling things aren't going well.Market Insiderread more
Apple CEO Tim Cook was the commencement speaker at Tulane University Saturday. In his speech, the tech executive focused on the importance of addressing climate change and...Power Playersread more
Amazon's large and flashy investments stand out from those of its tech peers over the past year.Technologyread more
Some analysts see streaming services like Netflix becoming hindered by one of the things that made them so popular in the first place — binge watching.Entertainmentread more
There is a shortfall of cybersecurity workers that could reach as high as 3.5 million unfilled roles by 2021. A start-up called Synack provides crowdsourced security, and...CNBC Disruptor 50read more
Yardeni Research's Edward Yardeni recommends investing in U.S. companies with exposure to China.Trading Nationread more
CNBC and SurveyMonkey's latest small business optimism index echoes that sentiment, finding 52 percent of small businesses say it's harder to find workers today than it was a...US Economyread more
CNBC combed through Wall Street research over the last week to see which stocks analysts say have the best risk-reward.Marketsread more
Western Union is not panicking, but the delivery of money around the world is being upended, says CEO of upstart TransferWise. It broke into the $689 billion remittances...CNBC Disruptor 50read more
shoppers@ (Adds comments from conference call, vendor Del Monte comment, details on profits, updates shares)
May 16 (Reuters) - Walmart Inc said on Thursday that prices for shoppers will go up due to higher tariffs on goods from China as the world's largest retailer reported its best comparable sales growth for the first quarter in nine years.
Walmart shares, which have gained 7% so far this year, jumped nearly 4% to $103.84 in early trade.
U.S. President Donald Trump increased tariffs on $200 billion worth of Chinese imports to 25% from 10% last week. The move is widely expected to raise prices on thousands of products including clothing, furniture and electronics. China retaliated on Monday, though on a smaller scale.
Walmart Chief Financial Officer Brett Biggs said in an interview that higher tariffs will result in increased prices for consumers. He said the company will seek to ease the pain, in part by trying to obtain products from different countries and working with suppliers' "costs structures to manage higher tariffs."
Moody's analyst Charlie O'Shea said the potential impact on Walmart and its shoppers from tariffs is limited by its food business. Its grocery operation, which includes fresh food, contributes roughly 56 percent to overall revenue.
"We believe Walmart has the wherewithal both financially and via its vendor relationships to minimize the impact on both itself and its shopping base," he said.
Walmart's U.S. Chief Executive Officer Greg Foran said on a conference call the company will maintain its "low-price leadership" and "manage costs on an item-by-item basis." But that position has been threatened, in part, by rising competition from discount chains like Aldi.
Also, Walmart's vendors have started to raise prices - such as Del Monte Foods, which supplies fresh and packaged goods to Walmart, including mandarin oranges imported from China. Prices will go up again with tariffs rising.
"Its not just tariffs. Transportation costs are up, labor costs are up. Its an inflationary environment," Del Monte CEO Greg Longstreet told Reuters on the sidelines of a conference. "A lot of that's going to have to be passed on. The consumer is going to have to pay more for a lot of critical goods."
NO SIGNS OF SPENDING SLOWDOWN
Walmart CFO Biggs said the retailer has not seen signs of a slowdown in consumer spending.
Investors and analysts expect U.S. spending to slow this year against a backdrop of rising debt, tariffs and economic uncertainty.
U.S. retail sales unexpectedly fell in April as households cut back on purchases of vehicles and a range of other goods, reflecting a slowdown in economic growth after a temporary boost from exports and inventories in the first quarter.
Earlier this week, Walmart stepped up its online battle with Amazon.com Inc by offering one-day delivery in some markets without a shipping fee, weeks after Amazon announced a similar plan.
Walmart said it will cost the company less than two-day shipping since orders will come straight from warehouses closer to the customer and arrive in a single box rather than multiple packages.
Sales at Walmart's U.S. stores open at least a year rose 3.4%, excluding fuel, in the quarter ended April 30. Analysts estimated growth of 3.1%, according to IBES data from Refinitiv.
Walmart has recorded over four straight years of sales growth, unmatched by any retailer.
Adjusted earnings per share increased to $1.13 per share, beating expectations of $1.02 per share.
But profits remained under pressure as more revenue was generated by lower-margin online sales and as e-commerce investments rose.
Operating income fell 4.1% to $4.9 billion, in part because of Walmart's purchase of Indian e-commerce startup Flipkart last year.
In the United States, the largest piece of Walmarts business, operating income grew 5.5% as some transportation costs eased.
Online sales rose 37%, slowing from the previous quarter's 43% increase but stronger than online sales growth at most of its brick-and-mortar rivals. The company has forecast a 35% increase in online sales this year.
Total revenue was up 1% at $123.9 billion but lower than analysts' estimates of $125.03 billion, dragged down by the currency impact and lower international sales. Excluding currency, revenue was up 2.5% at $125.8 billion.
On Tuesday, Walmart said it was considering a stock market listing for its British supermarket arm Asda, whose attempt to combine with rival J Sainsbury Plc was blocked by UK regulators last month. (Reporting by Nandita Bose in Washington; Additional reporting by Rod Nickel Editing by Jeffrey Benkoe)