Well the arithmetic isn't that simple. Cost of purchasing goods is far from WMT's only cost. So even if you assumed that particular expense increased 25% (reality being less), the impact to profit would be always less. Maybe WMT technically could eat the cost, their executives have probably ordered projections. But market forces and the will of the shareholders certainly makes it an unlikely proposition.
Well the arithmetic isn't that simple. Cost of purchasing goods is far from WMT's only cost. So even if you assumed that particular expense increased 25% (reality being less), the impact to profit would be always less. Maybe WMT technically could eat the cost, their executives have probably ordered projections. But market forces and the will of the shareholders certainly makes it an unlikely proposition.