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(Seoul=Yonhap Infomax) Jang Won Lee, Senior Reporter = John David Rainey, Chief Financial Officer (CFO) of Walmart Inc. (NYSE: WMT), cautioned that the affordability crisis facing US consumers is intensifying, with the gap in spending between low- and high-income groups widening further.
In an interview with Yahoo Finance on the 20th (US local time), Rainey said, "Over the past few months, the disparity between low-income and high-income groups has somewhat increased."
He added, "Looking at wage growth in October, the difference between the two groups was the largest in about a decade," indicating that income inequality is having a direct impact on consumer spending patterns.
Rainey diagnosed that "grocery prices remain about 25% higher than pre-COVID-19 levels, exacerbating the affordability crisis for consumers."
As a result, Walmart is striving to absorb tariff-related costs internally, particularly for imported goods such as bananas and avocados, in an effort to minimize the price impact passed on to consumers, he explained.
"While we are committed to our everyday low price policy, we are walking a fine line between protecting consumers and maintaining margins amid pressures from tariffs, supply chain issues, and high labor costs," Rainey said.
Meanwhile, Walmart posted an earnings beat in the third quarter, surpassing Wall Street expectations for both revenue and profit.
Revenue rose 5.8% year-on-year to $179.5 billion (approximately 263.94 trillion won), exceeding the market consensus of $177.6 billion.
Adjusted earnings per share (EPS) came in at $0.62, slightly above the expected $0.60.
jang73@yna.co.kr
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