Business
Higher tariffs are kicking in. Here’s what Walmart and other retailers said about their impact
Customer with shopping cart in the snack aisle of a Walmart store in Florida City, Florida, Aug. 5, 2025.
JC Milhet | AFP | Getty Images
As some of the biggest names in retail, including Walmart and Home Depot, delivered earnings results in recent weeks, they updated Wall Street on how they and their shoppers are responding to President Donald Trump‘s wave of tariff increases.
The takeaway?
Tariff costs are rising for retailers, and they’ve had to get creative to avoid widespread price hikes.
Yet consumer spending has largely stayed strong so far — and the pinch from higher duties hasn’t been as severe as some companies had feared. Compared with their concerns in the spring, retail executives struck a measured tone and said they don’t expect their costs, or customers’ prices, to jump dramatically.
Walmart had given one of the strongest warnings in May, as CFO John David Rainey said he expected some prices to rise during the summer. In an interview with CNBC on Thursday, however, Rainey said the nation’s biggest retailer has raised prices on some items, but in other parts of its stores has kept prices down or expanded discounts.
“There are certainly areas where we have fully absorbed the impact of higher tariff costs,” he said. “There are other areas where we’ve had to pass some of those costs along. But when you look across the basket of items, we’re certainly trying to keep prices as low as we can.”
Scot Ciccarelli, a retail analyst for Truist, said retailers are raising prices “but not nearly to the degree that might have been expected in early April” when Trump first announced his steep tariffs on dozens of countries.
“Most of the companies are kind of downplaying the impact of tariffs,” he said. “They’ve all talked about substantial mitigation efforts, whether that is diversifying sourcing, whether that is pushing price back to vendors.”
Here are three takeaways from a busy couple of weeks of retail earnings.
Consumer spending is steady — with some exceptions
The drumbeat of steady, but selective, U.S. consumer spending continued this quarter.
At Walmart, the nation’s largest grocer by revenue, sales of private-label items, which tend to cost less than national name brands, were roughly flat, Rainey told CNBC. When customers trade down to those cheaper brands or smaller packs of items, it can signal U.S. households feel strapped for cash.
As companies closely watch the consumer, Rainey said Walmart has seen shopper behavior that’s “very consistent.”
“They continue to be very resilient,” he said.
Walmart and Coach parent company Tapestry both raised their sales outlooks for the full year. Both companies said they saw healthy sales of discretionary items, such as clothing and handbags.
Sales of fashion items, including ladies’ apparel and shoes, accelerated at Walmart in the quarter, Rainey said.
One of Coach’s handbags, the large Kisslock bag that costs $695, sold out within minutes of launching in July, Tapestry CEO Joanne Crevoiserat said last week on the company’s earnings call.
Yet some categories are still a tough sell. And lower-income shoppers have been more sensitive to price changes.
Walmart CEO Doug McMillon said Thursday that the effect of tariffs on spending “has been somewhat muted.” Still, he added some shoppers have noticed and responded when prices creep up.
“As we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week, which we expect will continue into the third and fourth quarters,” he said. “Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher-income households and discretionary categories where item prices have gone up.”
Sales at Home Depot and Lowe’s improved as the quarter went on, with the strongest in July. Still, the companies weren’t ready to predict a turnaround for home improvement.
Lowe’s CEO Marvin Ellison attributed some of the recent pickup in demand to better weather and said “it’s too early for us to call that a trend.” Higher mortgage rates and borrowing costs have dinged homeowners’ willingness to tackle a major renovation or move to a new home, which tends to spur home projects.
Other brands had more dire warnings about spending. On the company’s earnings call, Crocs CEO Andrew Rees described the backdrop for the second half of the year as “concerning” and said its retail orders are weak.
He described Crocs’ customers as “super cautious.”
“They’re not purchasing. They’re not even going to the stores, and we see traffic down,” he said, adding that’s also true at its outlets, which draw more lower-income households.
Customers shop at a Home Depot store on August 19, 2025 in Chicago, Illinois.
Scott Olson | Getty Images
Retailers have blunted the effects of tariffs … so far
Retailers have jumped into action to try to minimize cost increases from tariffs or avoid them altogether.
Those tactics have included importing goods from a wider range of countries, getting items to the U.S. early and stocking up on high-frequency purchases or fresh merchandise that consumers are more likely to buy, even at higher prices, according to interviews of retail executives and earnings calls.
Yet as Walmart showed, retailers have been strategic about price increases — to not only avoid spooking customers, but also to dodge potential scrutiny from the White House. Trump criticized Walmart in May after the company warned it would have to raise prices.
Sharkninja, which makes a wide range of items including blenders and hairstyling tools, has “increased sell price on products, but done it very, very carefully,” CEO Mark Barrocas said in an interview. And in some cases, it had to roll back part of those price increases, he said.
The company has also reduced discounting and raised the price of new merchandise when it debuts. For example, Sharkninja initially planned to launch a new infrared skin care mask called CryoGlow at $299, but instead decided to price it at $349, he said.
For Walmart, Target and Tapestry-owned Coach, importing goods early and having merchandise in warehouses before tariffs took effect have helped them curb the hit from higher rates.
Home Depot Chief Financial Officer Richard McPhail told CNBC most of the imported products the company sold during the quarter landed ahead of tariffs. And Home Depot is taking more steps to blunt the effects: More than half of what the company sells comes from the U.S. and it aims to import no more than 10% from any single country by the end of the year.
Yet the tariff bill is still adding up. Walmart’s McMillon said he expects higher costs from duties to continue through the second half of the fiscal year. Other companies also provided specific estimates of how much the higher duties will cost them.
Even as Tapestry posted sales growth, its shares tumbled last week after it said costs from higher duties would total $160 million this upcoming fiscal year and ding profits.
While Trump’s tariff policy appears more settled than in the spring, tariffs on some countries could still rise.
Many of Trump’s tariffs on countries began in early August, but one of the key rates still hangs in the balance. He delayed higher tariffs on China for 90 days last week. Those had jumped as high as 145%, but are now at 30% as negotiations continue.
Target acknowledged the trade uncertainty with its own strategy. It gave a wider than usual range for its full-year earnings per share outlook.
Inside a Crocs store at Queens Center in New York.
Ryan Baker | CNBC
Strong brands, new moneymakers matter more than ever
Strong brand loyalty and lucrative new businesses have made it easier for some companies to weather the uncertainty.
As homeowners postpone larger projects, Home Depot and Lowe’s have bulked up their business among home professionals to attract steadier traffic and prepare for when demand picks up again. Along with reporting earnings this week, Lowe’s announced it’s buying Foundation Building Materials for $8.8 billion, marking its second acquisition of a home professional-focused company in recent months.
Home Depot announced its own pro-focused deal earlier this summer and made the largest acquisition in its history when it bought SRS Distribution last year.
Walmart also has benefited from newer revenue streams, especially its advertising business and third-party marketplace. Global advertising grew 46% in the most recent quarter, including ad-enabled smart TV maker Vizio, which it acquired last year.
Its marketplace revenue grew by 17% year over year. That business includes sellers who get charged a commission and often pay for services, such as ads on Walmart’s site to promote their products or fulfillment services to have the big-box retailer store pack and ship orders to customers.
Those “more diversified set of profit streams,” which have higher margins than selling a gallon of milk or a T-shirt, make Walmart’s earnings steadier even as the company faces profit pressures, Rainey said on the company’s earnings call.
“We are more than just a standard brick-and-mortar retail business,” he said on the call.
For some brands, customer demand is high enough to help offset tariffs or allow them to charge more.
Sandal maker Birkenstock, for instance, “saw no pushback or cancellations” after its tariff-related July 1 price increases, CEO Oliver Reichert said on the company’s earnings call.
Coach, which has driven up its average price of items over the past five years and reduced its level of markdowns, can better “absorb a lot of these input costs,” Coach CEO Todd Kahn told CNBC.
On the flip side, tariff costs have hit some brands harder, especially if they don’t have the new products customers seem to want or are skittish about what sales will look like later this year. High-performing companies with massive scale such as Walmart often have leverage with vendors to pass on costs — but other businesses might not.
“If you’re a struggling brand, or you’re not really growing your business with a vendor, that vendor has less incentive to absorb incremental costs, whether it’s from tariffs or supply chain or whatever,” Truist’s Ciccarelli said.
Target said its profit margins in the quarter were hurt by the costs of cancelling orders. Crocs also said it is reducing orders for the back half of the year.
Crocs took another unusual step: Rees said the company is taking back older inventory from retailers that sell its Heydude shoe brand and swapping it out with fresher styles.
Business
Top stocks to buy today: Stock recommendations for August 28, 2025 – check list – The Times of India
Top stock market recommendations: According to Aakash K Hindocha, Deputy Vice President – WM Research, Nuvama Professional Clients Group, Nykaa, Kaynes, and Dr Reddy’s Laboratories are the top buy calls for today. Here’s his view on Nifty, Bank Nifty and the top stock picks for August 28, 2025:Index View: NiftyAfter an inside bar formation on Monday, Nifty opened with a gap down reeling all throughout the session ahead of its trading holiday on Wednesday. The index has closed below its trailing support of 24800 allowing for further downside to be opened for 24500 / 24350. Nifty has also formed a bearish head and shoulders formation on daily charts with a neck line support seen at 24450. A break below the same post monthly expiry could reel in further pressure on the index.Bank NiftyUnderperforming Nifty, Bank has broken its support of 55050 opening for a test of sub 54000 odd levels to begin with. The index has also closed at a 3.5 month low on daily charts ahead of its monthly expiry scheduled on Thursday. 55000 is likely to act as resistance on the upside while the index slides below sub 54000 levels in the coming week.NYKAA (BUY):
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NEW DELHI: Government is going to push for bridging the gaps on several contentious issues in trade talks with the European Union next month, while also demanding that the trading bloc offer concessions on carbon tax on the lines of the deal with the US, an official said Wednesday.“We are in the last mile, quite a few things are narrowing down. There are a handful of major issues and we are trying to narrow the gaps and then leave it to the leaders to take a political call,” the official said ahead of the next round of talks scheduled for Sept 8-12. EU commissioner for trade and economic security MaroS Šefcovicis also expected to travel to the Capital after the official level meeting to hold consultations with commerce and industry minister Piyush Goyal.Both sides have set an year-end deadline to finalise the agreement and India is keen that it fills the missing link in Europe, having signed agreements with the UK and the four nation European Free Trade Association, comprising Switzerland, Norway, Iceland and Liechtenstein.The deals are part of efforts to push for a diversified trade basket that provides Indian exporters access to crucial markets. India already has trade pacts, from Australia to Asean, the UAE and Mercosur countries, and is seeking more deals.Sources suggested that govt will help exporters diversify, with the focus expanded from 20 countries to 50, while also coming out with export promotion measures to overcome the challenge of US tariffs. Intensive consultations are lined up with exporters in the coming days.Govt officials said based on the feedback, strategies to offset the impact of the US tariffs, including support from the Centre, will be devised.Outreach in countries, including the UK, Japan, and South Korea, to push textiles exports are also planned, with similar initiatives planned for other sectors. In case of textiles for instance, 40 potential markets have been identified and in each case a targeted approach is proposed, positioning Indian companies as reliable suppliers of quality, sustainable, and innovative textile products. Official said that export promotion councils (EPCs) will be the mainstay of the diversification strategy.
More than 30 baby sleeping bags found on online marketplaces including Amazon and eBay pose a suffocation risk, according to an investigation.
Which? said online marketplaces had been allowing the sale of baby sleeping bags similar or identical to products that were officially recalled by the Office for Product Safety and Standards (OPSS) for suffocation risks.
A common characteristic of the products found by Which? were hoods which could cover a baby’s head and face and result in suffocation, the watchdog said.
The inclusion of hoods does not comply with the British Standards Institution’s safety standards for this reason.
Some of the sleeping bags Which? looked at, such as a teddy bear-style blanket on Amazon Marketplace, did not have arm holes, despite sleeping bags needing them to meet the safety standard.
Those without can cause a baby to slip down inside the sleeping bag, covering their face and risking suffocation.
Which? also found a sack-style sleeping bag listing on eBay which showed a baby being “positively swamped” by the item.
The consumer group also found five listings on Etsy that it was “concerned about”, with two appearing to be identical to recalled products, and the other three in a similar style and listed as sleeping bags.
Which? is urging shoppers to avoid baby sleeping bags with hoods or excess material, such as large bows or other novelty additions, which risk covering a baby’s head and face while they move around in their sleep.
It is best to always use a sleeping bag with arm holes as these help to stop babies slipping down inside the bag.
Other items to avoid included products sold as multipurpose items, such as a swaddle, stroller cover and baby cocoon as well as a sleeping bag, to ensure individual items conform to safety standards.
Which? said it was concerned the products continued to be sold despite market surveillance undertaken by the OPSS earlier this year.
The regulator undertook test purchasing for a range of items sold online, including baby sleeping products, and worked with online marketplaces to remove the listings.
However Which? said it found 35 potentially lethal sleeping bags still being sold just four months later.
Sue Davies, Which? head of consumer protection policy, said: “It’s outrageous that dangerous baby sleeping bags are still being sold on online marketplaces.
“Our previous investigations showed this is part of a wider pattern: unsafe products are removed, only to resurface. The only way to break this cycle is by holding online marketplaces legally accountable, with tough penalties for failures.”
An Amazon spokesman said: “We require all products offered in our store to comply with applicable laws, regulations and Amazon policies.
“The products flagged are not in scope of the safety alerts shared by Which?.
“If customers have concerns about an item they’ve purchased, we encourage them to contact our customer service directly so we can investigate and help resolve their issue.”
An eBay spokeswoman said: “Consumer safety is a top priority for eBay. We work diligently to keep our site safe and prevent prohibited listings through seller compliance audits, block filter algorithms for unsafe listings, and AI-supported monitoring by our team of in-house specialists.
“These proactive measures have prevented millions of potentially unsafe products from being listed every year. Listings that violate eBay policy, including those identified in this investigation, are swiftly removed.”
Etsy has been approached for comment.
Canada, Brazil to resume Canada-Mercosur FTA talks in October
Top stocks to buy today: Stock recommendations for August 28, 2025 – check list – The Times of India
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