President Donald Trump held a meeting with the CEOs of Walmart Inc. (NYSE:WMT), Home Depot Inc. (NYSE:HD), and Target Corporation (NYSE:TGT) on Monday.
What Happened: The meeting was centered around the possible effects of Trump’s wide-ranging tariff plans on the import-centric business models of these retail behemoths. Walmart’s CEO Doug McMillon, Target CEO Brian Cornell, and Home Depot’s Ted Decker attended the meeting, CNBC reported.
Despite initial reports of a representative from Lowe’s Companies Inc. (NYSE:LOW) attending, it was later confirmed that Lowe’s was not represented at the meeting.
Post-meeting, the three companies issued similar statements, expressing gratitude for the opportunity to share their insights with the President and his team. They pledged their commitment to delivering value for American consumers and expressed eagerness to continue the dialogue.
President Trump later expressed satisfaction with the meeting, stating it was an honor to host the retail leaders in the Oval Office.
David French, the executive vice president for government relations at the National Retail Federation, previously told the New York Times, "The deal window may be open.”
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Why It Matters: Walmart sources about one-third of its products globally, with China and Mexico being the most significant suppliers. Meanwhile, Target, known for affordable fashion and home goods, primarily relies on overseas manufacturing for these items. For these retailers, tariffs present a new hurdle in an already challenging economic environment, where consumers are seeking low prices amidst high inflation.
Leading industry lobbying groups from agriculture, construction, manufacturing, retail, and tech are urging the White House to ease more tariffs, arguing that certain products are too costly or impractical to produce domestically and must be imported. Apple (NASDAQ:AAPL) CEO Tim Cook reportedly negotiated with the White House and obtained relief for both his company and the wider electronics industry. Trump also later stated that he ‘helped’ the CEO and his business.
Nevertheless, earlier this month, Walmart reaffirmed its first-quarter guidance, indicating steady sales growth despite the looming tariffs. The retail giant continues to project a sales growth of 3% – 4% in constant currencies for the first quarter of FY26.
Meanwhile, a recent Goldman Sachs analysis highlighted the potential impact of China tariffs on profitability for Home Depot and Target. The report suggests that despite tariff and margin pressures, there might be an upside for these retail giants.
Benzinga's Edge Rankings highlight strong momentum and growth rankings for Walmart in the 94th and 55th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks.
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