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Walmart’s stock took a hit on Thursday after it reported earnings.
Walmart’s revenue came in higher than expected, but its stock fell anyway.
Why? The company said that tariffs are going to increase prices and could hurt sales.
Walmart’s CEO, Doug McMillon, said that middle and lower-income families are being hit by the price increases the most.
Inflation could be picking back up, with businesses reporting higher costs.
But, a lot of companies have been absorbing those higher costs instead of passing them along to the customer.
Economists at Goldman Sachs said that could change soon, and consumers might see higher prices.
If inflation does pick up, that would make it harder for the Federal Reserve to cut interest rates.
Walmart’s stock took a hit, trading down more than 4% on Thursday.
Target’s stock continued to slide as well, and is now down nearly 30% in 2025.
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