All companies have a statement of values and for customers and potential customers it is very hard to disagree with them. The companies say their intended purposes and because we agree with them, as an investor you can feel good investing in the company. But do the companies actually live up to it?

In an article by Anne D’Innocenzio of the Associated Press, one company that lives up to its statement of values is Walmart. The company is the biggest retailer in the US and it makes low prices a priority. If you have ever shopped there, you will see price drop and the slogan all over the store.

Executives at the $750 billion company told industry analysts, they were doing everything in their power to absorb the higher costs from tariffs as ordered by President Trump. However, given the magnitude of the tariffs, higher prices are unavoidable.

For all those companies importing from China, President Trump increased tariffs across the board to 50%, then 90% then 145% and has come down to 30% for 90 days.

In the retail world, companies order 6 months in advance to have inventory for the season because during the winter, not many people buy shorts. They buy jeans, heavier pants because it is cold out or there is a time lag with retail.

CFO John David Rainey said even though the quarter had good sales, we are wired to keep prices low, but there is a limit we can bear, or any retailer for that matter.

Mr. Rainey said the retailer did not pause shipments from China as a result of the tariffs, because it did not want to hurt its suppliers and wanted to keep merchandise flowing. 2/3’s of Walmart’s merchandise is sourced in the US, with groceries accounting for 60% of Walmart’s US business.

China represents a big chunk of volume for certain categories such as electronics and toys.

Walmart is asking suppliers to swap input materials for components if possible.

CEO Doug McMillon said for some goods simply cannot shift production or produce easily in the US and that will not change for the foreseeable future.

Walmart earned $4.45 billion or 56 cents a share for the quarter. Revenue rose 2.5% to $165.61 billion.

After the earnings call, Treasury Secretary Scott Bessent called CEO McMillon and tried to explain to the public that Walmart benefited from lower gas prices, and that when companies talk about the possibilities, they have a shareholder’s duty to talk about the worst-case scenario. Secretary Bessent was hoping that will not happen, but prices do rise.

Linking to dividend paying stocks, companies report every quarter and the bigger companies often come into the financial press. If you own a smaller company, then industry specific publications will report the results as well as the company’s website under investors always has information for investors. The industry publications help you see trends and what is coming next and you can evaluate if your company is still hitting your targets.

There are more questions than answers, till the next time – to raising questions.