First quarter earnings season is beginning to wrap up, with Nvidia’s report on Wednesday serving as the last major earnings event on the calendar for a while.
Throughout numerous earnings calls with analysts, one theme remained dominant: tariffs.
Some notable examples include Walmart saying it may raise prices, which drew heat from President Trump.
“The immediate challenge is obviously navigating the impact of tariffs here in the US,” Walmart CEO Doug McMillon said on the company’s earnings call on May 15. “We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Another example came from the maker of Hoka sneakers, Deckers (DECK).
“Based on the tariffs as of today’s date, which are still subject to change, we expect to face an increase of up to $150 million to our cost of goods sold in fiscal year 2026 and with the related yet-to-be-determined impact to demand,” Deckers CFO Steven Fasching said on May 22. “Our teams are closely monitoring changes to tariff policies and continue to evaluate levers to mitigate the impact on our business, including, but not limited to, flexing the pricing power of our brands.”
With Trump’s announcement of new possible 50% tariffs on the European Union and direct shots at US companies like Apple and Walmart, it’s all but certain that this buzzword will remain in play when earnings pick back up in July.
