By DANIELLE KAYE NYTimes News Service
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Everyday low prices are going to get a bit steeper.

Walmart reported another quarter of solid sales Thursday, but the retail giant, known for its low prices, cautioned that President Donald Trump’s tariffs will push the company to start raising prices soon.

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“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Doug McMillon, Walmart’s CEO, said on a call with analysts Thursday.

Walmart, the largest retailer in the United States, said sales at its U.S. stores rose more than 3%, to $112 billion, in its most recent quarter, which ran through April. The company’s e-commerce sales jumped more than 20%, with the fast-growing segment recording its first-ever profitable quarter.

The retailer kept its full-year financial forecast unchanged from its previous projection in February, with revenue expected to increase 3%-4% this year. Walmart, however, refrained from projecting profits for its current quarter as tariff policies and pricing decisions remain in flux. Many other large companies have recently scrapped their forecasts, saying it was too difficult to make predictions under the Trump administration’s on-again, off-again tariff policies.

Even as Walmart’s sales remain strong and its full-year projections hold steady, executives said tariffs are weighing on the company and will lead to higher prices. McMillon said that in some cases, the company will maintain prices, “despite the tariff cost pressure,” but emphasized that “the higher tariffs will result in higher prices.” Shoppers could see the uptick as soon as the end of this month, John David Rainey, Walmart’s chief financial officer, said in an earlier interview with CNBC.

The latest quarter spanned three months during which tariffs roiled corporate America, and Wall Street analysts and investors closely watched Walmart’s report for any signs of the fallout from Trump’s trade wars in the retail sector. Trump unveiled a suite of tariffs on dozens of countries in early April. On Monday, the Trump administration temporarily lowered tariffs on many Chinese imports to 30%, down from the 145% rate that had been in place for nearly one month.

Walmart executives have recently acknowledged uncertainty as to how tariffs might affect the company’s bottom line, while stressing that the retail behemoth is well positioned to navigate the turmoil.

At an investor event on April 9, which coincided with a major trade-war escalation, executives emphasized that two-thirds of what Walmart sells in the United States is made, grown or assembled domestically. McMillon reiterated Thursday that domestic production is “helpful” as it navigates tariffs. Walmart will aim to keep food prices “as low as we can,” McMillon said, even as many general merchandise items face higher costs.

Retail industry observers agreed that Walmart is more insulated from tariff-induced cost increases than many of its competitors. Walmart’s large grocery business, much of which is sourced in the United States, limits the company’s reliance on imports, said analysts at Bank of America. But they cautioned that Walmart is not immune to cost increases stemming from tariffs.

“The company has scale, strong relationships with vendors, strong relationships with consumers. That will help them,” said David Silverman, a retail analyst at Fitch Ratings. “That being said, they’re a significant importer.”

Silverman said shoppers might first see prices rise for discretionary items, like electronics and toys, much of which is sourced from abroad, especially China. But Walmart is also probably assessing consumer behavior and identifying the products that shoppers might shy away from if prices were to rise, which could factor into pricing decisions, he added.

As the entire retail sector continues to face down the economic effects of the Trump administration’s policies, Walmart’s relatively favorable position compared to its competitors “will probably become even more evident as the year unfolds,” analysts at UBS said in a research note.

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