Walmart can absorb tariffs, fmr. U.S. CEO Simon questions price hikes

Walmart’s former U.S. CEO, Bill Simon, believes that Walmart is well-positioned to weather the storm of tariffs without having to raise prices for consumers. Simon, who led Walmart U.S. from 2010 to 2014, suggests that the company may be exaggerating the challenges posed by tariffs.

In a recent interview on CNBC’s “Fast Money,” Simon pointed out that Walmart actually saw an increase in its gross profit margin in the U.S. business in the last quarter. He mentioned that the company reported flat general merchandise categories due to price deflation, which gives them some flexibility to manage any potential tariff impact.

Despite concerns about potential price increases, Simon remains optimistic about consumer resilience, citing a strong job market and lower fuel prices. However, he did express worries that negative commentary from corporate executives could erode consumer confidence.

Walmart’s shares fell slightly on Thursday, but closed above session lows. The stock is currently down nearly 9% from its all-time high in February. Despite warnings of slowing profits, Simon believes that Walmart shares are a good investment opportunity, especially given the company’s positive performance so far this year.

As of Thursday’s close, Walmart shares are up more than 6% in 2025 and have climbed over 7% since President Donald Trump’s tariff announcement in April. Simon’s insights offer a unique perspective on Walmart’s resilience in the face of economic challenges.

In conclusion, Walmart’s ability to navigate tariff headwinds without passing on costs to consumers is a testament to the company’s strength and strategic positioning in the market. Simon’s analysis provides valuable insights for investors and consumers alike, highlighting Walmart’s potential for continued success in the ever-changing retail landscape.