Dive into the Mind of the Editor, No Strings Attached
Yo, here’s the scoop. Roula Khalaf, who basically rules over at the FT, shuffles through the chaos of the week and collects her top faves just for you in this freebie newsletter. It’s like raiding her brain for treasure.
Walmart, Trump, and All That Tariff Drama
So, picture this pie of madness: Walmart—our gigantic, can’t-hide-from-’em retailer—says, "Yo, predicting our profits is like nailing jelly to a wall right now." Thanks, Mr. Trump, and your hefty tariffs. That drama just doesn’t quit, right? We’re talking snagging $100bn worth of stuff into the U.S. each year, and now there’s a whopping 104% fee on goodies from China. Ouch!
In Dallas, where all the bigwigs hang out, Doug McMillon, the Walmart kingpin, takes the stage. I mean, this dude’s been around the block: 9/11, financial crashes, pandemics, inflation hell—you name it, he’s seen it. Yet here he is, playing the offensive game. He’s like, "Okay, we ain’t invincible, but we’ve got moves."
What Walmart’s doing is kind of genius. They’re muscling down prices, grabbing more market pie from those other struggling stores. Inflation’s hitting folks hard, and Walmart’s here for the rescue, right? But man, their stock’s been tanking—down like 20% since February ’cause Trump’s trade battles are scary stuff for investors.
Walmart earlier thought hey, maybe a little increase in profits this quarter, like up to 2%? Nope. Now, it’s like, everything’s up in the air. They’re holding prices down, squeezing their own margins—which is retail lingo for "profits are gasping for air here."
Despite all this chaos, Walmart sticks to its guns on the sales front. They’re confident sales will grow 3-4 percent, and operating income in that range. Executives are crossing fingers, praying to the retail gods, and trading’s all perked up—3.5% jump after some positive signs for long-term growth. It’s not just any big talk either. They firmly believe in their strategy, their business mojo.
Walmart’s US arm made a crazy $560bn last year. Over two-thirds of what they sell is from good ol’ US soil, but they’re loading up on imports like it’s Black Friday every day. Man, they could fill Wonderland with their ocean of imports. Dan Bartlett, this big shot over there, is like, "Sure, Trump says we’re in for price surges and turmoil, but remember, Walmart was born to keep prices low."
It’s like an epic duel—Walmart vs. Tariffs: The Low Price Struggle. Sit tight ’cause this saga’s just getting started.
