 |
|
|
|||||
Walmart, known as one of America’s most affordable retail chains, just signaled that President Trump’s tariffs are about to disrupt its competitive pricing. Here’s what to know: What did Walmart announce? On an earnings call Thursday discussing the company’s newly released Q1 FY2026 financial results, CEO Doug McMillon spoke about price changes that he says will hit in the coming weeks, as the impact of tariffs builds. “We will do our best to keep our prices as low as possible,” he said on the call. “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.” Which items sold at Walmart will be the most impacted? McMillon said that tariff-related pressure has been building over the last two months, noting that, so far, toys and electronics have been most impacted. Many companies whose products are sold at Walmart have already raised prices to absorb the impact of tariffs, or signaled that they will soon, such as toy brand Mattel. Last week, the brand said it would raise prices and move production from China to countries with lower tariffs. But on Thursday, McMillon acknowledged that pressure has been building on food prices, too. “We want to keep our food and consumables prices as low as we can,” he added, noting that many Americans have felt financially strained when it comes to buying groceries in recent years. He also noted that the retailer may feel more tariff-related-pressure on some food items more than others, such as bananas, avocados, coffee, and more, coming out of countries like Costa Rica, Peru, and Colombia. “We’ll do our best to control what we can control in order to keep food prices as low as possible,” he said. “An example would be controlling the amount of fresh food waste.” What did Walmart’s earnings report say? Walmart’s Q1 report showed the company’s revenue was up 2.5%, which slightly missed Wall Street’s projections. Walmart said in Thursdays press release that it expects second-quarter net sales to increase by 3.5% to 4.5% in constant currency. Walmart stock (NYSE: WMT) was down more than 3% in early trading on Thursday. Will other retailers raise prices, too? Given that Walmart is a giant brand that offers so many products, experts say the company is better equipped than most to absorb some tariff-related pressure. But if the chain is being forced to raise prices, that’s a very bad sign for consumers. If Walmarts coming outwith its scale and its buying power and its focusand saying prices are going to rise, everyone else is going to have to follow suit, said Neil Saunders, managing director at retail consultancy GlobalData, per NBC. Walmart is firing the starting gun on a period of price increases.
Category:
E-Commerce
On Thursday morning, Pittsburgh-based Dick’s Sporting Goods announced its plans to acquire footwear and apparel retailer Foot Locker. The two companies have entered into a merger agreement, where Dick’s Sporting Goods will buy Foot Locker for $2.4 billion. Here’s what to know about the deal. How will the deal work? Dicks will finance the merger using a combination of cash-on-hand and new debt. As part of the agreement, Dick’s will acquire Foot Locker’s vast portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, and WSS. Foot Locker currently operates over 2,000 retail stores across the globe. Dick’s will operate Foot Locker as a stand-alone business within its portfolio. How have the companies’ stock prices reacted to the news? Dick’s Sporting Goods shares (NYSE: DKS) were down more than 13% in early-morning trading on Thursday. By contrast, Foot Locker stock (NYSE: FL) jumped more than 82%. In a joint press release, leaders from both companies shared optimism for the planned merger. Dicks CEO Lauren Hobart said, “We look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business.” Hobart continued, “Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love.” Foot Locker CEO Mary Dillon said, “By joining forces with DICK’S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry.” Tariff pain and broader economic uncertainty The news comes as retailers brace for uncertainty due to President Trump’s tariffs on foreign goods. The vast majority of footwear sold in the U.S. is imported from other countries. Earlier this week, the United States and China reached a trade-war truce. Both countries will temporarily reduce tariff rates for 90 days. However, there is still uncertainty among U.S. retailers due to Trumps erratic and ever-changing trade policies. The merger agreement was unanimously approved by the boards of directors of Dicks and Foot Locker. As part of the agreement, Foot Locker investors can elect to receive $24 in cash or 0.1168 shares of Dicks stock.
Category:
E-Commerce
On Wednesday, the Environmental Protection Agency announced plans to weaken limits on some harmful “forever chemicals” in drinking water roughly a year after the Biden administration finalized the first-ever national standards.The Biden administration said last year the rules could reduce PFAS exposure for millions of people. It was part of a broader push by officials then to address drinking water quality by writing rules to require the removal of toxic lead pipes and, after years of activist concern, address the threat of forever chemicals.President Donald Trump has sought fewer environmental rules and more oil and gas development. EPA Administrator Lee Zeldin has carried out that agenda by announcing massive regulatory rollbacks.Now, we know the EPA plans to rescind limits for certain PFAS and lengthen deadlines for two of the most common types. Here are some of the essential things to know about PFAS chemicals and what the EPA decided to do: Please explain what PFAS are to me PFAS, or perfluoroalkyl and polyfluoroalkyl substances, are a group of chemicals that have been around for decades and have now spread into the nation’s air, water and soil.They were manufactured by companies such as 3M, Chemours and others because they were incredibly useful. They helped eggs slide across nonstick frying pans, ensured that firefighting foam suffocates flames and helped clothes withstand the rain and keep people dry.The chemicals resist breaking down, however, which means they stay around in the environment. And why are they bad for humans? Environmental activists say that PFAS manufacturers knew about the health harms of PFAS long before they were made public. The same attributes that make the chemicals so valuableresistance to breakdownmake them hazardous to people.PFAS accumulates in the body, which is why the Biden administration set limits for two common types, often called PFOA and PFOS, at 4 parts per trillion that are phased out of manufacturing but still present in the environment.There is a wide range of health harms now associated with exposure to certain PFAS. Cases of kidney disease, low-birth weight and high cholesterol in addition to certain cancers can be prevented by removing PFAS from water, according to the EPA.The guidance on PFOA and PFOS has changed dramatically in recent years as scientific understanding has advanced. The EPA in 2016, for example, said the combined amount of the two substances should not exceed 70 parts per trillion. The Biden administration later said no amount is safe. There is nuance in what the EPA did The EPA plans to scrap limits on three types of PFAS, some of which are less well known. They include GenX substances commonly found in North Carolina as well as substances called PFHxS and PFNA. There is also a limit on a mixture of PFAS, which the agency is also planning to rescind.It appears few utilities will be impacted by the withdrawal of limits for these types of PFAS. So far, sampling has found nearly 12% of U.S. water utilities are above the Biden administration’s limits. But most utilities face problems with PFOA or PFOS.For the two commonly found types, PFOA and PFOS, the EPA will keep the current limits in place but give utilities two more yearsuntil 2031to meet them. Announcement is met with mixed reaction Some environmental groups argue that the EPA can’t legally weaken the regulations. The Safe Water Drinking Act gives the EPA authority to limit water contaminants, and it includes a provision meant to prevent new rules from being looser than previous ones.“The law is very clear that the EPA can’t repeal or weaken the drinking water standard,” said Erik Olson, a senior strategist at the nonprofit Natural Resources Defense Council.Environmental activists have generally slammed the EPA for not keeping the Biden-era rules in place, saying it will worsen public health.Industry had mixed reactions. The American Chemistry Council questioned the Biden administration’s underlying science that supported the tight rules and said the Trump administration had considered the concerns about cost and the underlying science.“However, EPA’s actions only partially address this issue, and more is needed to prevent significant impacts on local communities and other unintended consequences,” the industry group said.Leaders of two major utility industry groups, the American Water Works Association and Association of Metropolitan Water Agencies, said they supported the EPA’s decision to rescind a novel approach to limit a mix of chemicals. But they also said the changes do not substantially reduce the cost of the PFAS rule.Some utilities wanted a higher limit on PFOA and PFOS, according to Mark White, drinking water leader at the engineering firm CDM Smith. They did, however, get an extension. “This gives water pros more time to deal with the ones we know are bad, and we are going to need more time. Some utilities are just finding out now where they stand,” said Mike McGill, president of WaterPIO, a water industry communications firm. The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment Michael Phillis, Associated Press
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||