Walmart Warns of Possible Price Hikes as Fuel Costs Hit Profits

Walmart signaled that it may raise retail prices in the coming months to offset rising fuel costs linked to global geopolitical tensions.

Walmart has reported rising fuel costs and potential price adjustments. (Photo: Mike Mozart Flickr)

The retailer reported strong first-quarter earnings, with revenue rising 7.3% to $177.8 billion and US same-store sales up 4.1%, according to Kayla Steinberg reporting for NBC News.

However, higher fuel expenses significantly impacted profits. Walmart said it absorbed about $175 million in increased fuel costs during the quarter.

Chief Financial Officer John David Rainey said, “If the current elevated cost environment persists, we’d expect somewhat higher retail price inflation in Q2 and the second half of the year.”

The company also issued weaker-than-expected second-quarter guidance, leading to a sharp drop in its stock price and a multibillion-dollar loss in market value.