According to the former US CEO of discount retailer, Walmart’s business is strong enough to withstand tariff headwinds without raising prices.
Bill Simon, who operated Walmart from 2010 to 2014, suggests the company may be exaggerating tariff-related challenges.
“If you look deeper and dig into the details of today’s revenue release, I know that this quarter expanded its gross profit margin at 25 basis points in the US. So they’re expanding their margins. “In my view, I’ll give them some room to manage the tariff impact they have.”
Simon is an optimistic consumer and can handle price increases significantly. This year we are quoting a stable job market and cheap fuel prices. However, he points out that worrying commentary from corporate executives may have fallen into consumer trust.
“I think as I heard from my friends at Walmart today, all the fate and darkness I’ve heard about price increases and tariffs will scare them.”
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Walmart stocks fell 0.5% on Thursday, but stocks closed beyond the low session. The stock is almost 9% from its all-time high of $105.30 hit on February 14th.
On February 20th, Simon joined Fast Money, and Walmart’s shares concluded their worst week of tariff insecurity since May 2022. He suggested that the stock was a steal for investors, despite Walmart warning that profits were slowing down.
As of the end of Thursday, Walmart stocks were positive that year, up over 6% in 2025. Since President Donald Trump’s tariff announcement on April 2, shares have risen by more than 7%.
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