Walmart's former U.S. CEO Bill Simon thinks retailer can easily absorb tariff costs, criticizes its 'doom and gloom' commentary

Walmart's concern is beardown capable to withstand tariff headwinds without expanding its prices, according to the discount retailer's erstwhile U.S. CEO.

Bill Simon, who ran Walmart U.S. from 2010 to 2014, suggests the institution whitethorn beryllium overstating challenges tied to tariffs.

"If you look down heavy and excavation into the details of their net merchandise today, you cognize this 4th they grew their gross nett borderline successful the U.S. concern 25 ground points. So, they're expanding their margin. They besides reported their wide merchandise categories were flattish due to the fact that they had mid-single digit terms deflation," helium told CNBC's "Fast Money" connected Thursday, the time Walmart reported fiscal first-quarter results. "That benignant of gives them country successful my presumption to negociate immoderate tariff interaction that they would have."

Simon is optimistic consumers tin mostly grip terms increases — citing a steady jobs market and cheaper substance prices this year. But helium notes worrisome commentary from firm executives could beryllium chipping distant astatine user confidence.

"All the doom and gloom we perceive astir terms increases and tariffs similar we heard from my friends astatine Walmart today, I deliberation it scares them some," said Simon, who's present connected the Darden Restaurants board and is the president at Hanesbrands.

Walmart shares fell 0.5% connected Thursday, but the banal closed supra league lows. Shares are disconnected astir 9% from the all-time precocious of $105.30 deed connected Feb. 14.

On Feb. 20, Simon joined "Fast Money" arsenic Walmart shares were wrapping up their worst week since May 2022 connected tariff jitters. He suggested the banal was a bargain for investors adjacent though Walmart warned profits were slowing.

As of Thursday's close, Walmart shares are affirmative for the year, up much than 6% successful 2025. The banal has climbed much than 7% since President Donald Trump's tariff announcement connected April 2.

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