Walmart's Stock Falls as Sales Growth Stalls, Yet E-Commerce Surge Offsets Decline
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Walmart shares tumble as sales growth slows to six-year low Retailer to use almost $2.9bn in tariff refunds to deliver price cuts for squeezed American consumers
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New York Post BusinessWalmart shares sank 8.6% Thursday after the retailer reported its slowest sales growth in more than six years as cash-strapped customers cut back on spending amid higher gasoline prices.
ZeroHedgeWalmart shares had retreated in recent months, partly on concerns that the company’s US growth could decelerate. Comparable sales growth has now slowed for two straight quarters, and the retailer cautioned earlier this year that high fuel costs could squeeze earnings. Rivals including Target Corp. have seen sales pick up as its turnaround efforts gain traction. Kroger Co. and Costco Wholesale Corp. meanwhile are lowering food prices to grab more share.
FortuneWalmart experienced the slowest growth in U.S. comparable sales in six years during its most recent quarter and it offered a cautious outlook for the year, sending company shares down 6% before the opening bell Thursday.
CNBCWalmart is off roughly 6.5% this morning after the retail giant reported disappointing Q2 same-store sales, or comps, growth of 2.6% and issued light earnings guidance for the current period. Pros: using tariff refunds to keep prices low, e-commerce sales, and advertising. A big con: pharmacy drag due to lower drug prices. CFO John David Rainey told CNBC that consumers have "been very resilient in this environment." 6. A round of price target cuts for Lowe's following yesterday's quarterly results, which management itself admitted were not that strong. UBS went to $275 from $285. Citi went to $260 from $267, while saying numbers for the rest of the year are now "de-risked." Lowe's biggest problem: too much DIY customer exposure versus Club name Home Depot , which skews professional.
MarketWatchShares of Walmart declined on Thursday after the world’s largest supermarket chain reported disappointing U.S. comparable sales growth, after drug prices were hit by changes to regulations on Medicaid prescribed medication.
BBC BusinessPublished Sales at the US retail giant Walmart grew at their slowest pace for more than six years in the most recent quarter, suggesting American shoppers are under strain.
BloombergWalmart Slides Most Since 2022 on Slowing US Sales Growth Bloomberg's Poonam Goyal said Walmart's earnings miss is largely due to lagging pharmaceutical sales impacted by new federal negotiations aimed at delivering lower drug prices. Goyal said that it's an issue that both the company and investors are expecting to continue affecting sales. Goyal said that Walmart could have the opportunity to calm concerns about flagging US sales growth by focusing on bringing in customers with competitive pricing. (Source: Bloomberg)
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Comparable sales in U.S. stores, which measure sales at stores open at least a year along with online sales tied to those locations, rose 2.6% in the second quarter. They rose 4.1% in the previous quarter.
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ZeroHedgeComp store sales at US stores open at least a year, excluding fuel, rose 2.6% in the second quarter, far below the lowest analyst estimate compiled by Bloomberg.
New York Post BusinessIn the second quarter ended July 31, US comparable sales – at stores and digital channels open for at least 12 months – rose 2.6%, the smallest increase since 2020, the company said Thursday.
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That has broadened Walmart’s customer base and the retailer has begun capturing a larger share of wealthier Americans. The biggest gains in market share for Walmart are coming from households with annual incomes over $100,000.
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Walmart now expects net sales to rise 4% to 5% for the full year, up from a previous estimate of 3.5% to 4.5%, and operating income to jump 7% to 8.5%, up from a range of 6% to 8%.
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FortuneFor the full year, Walmart now expects earnings per share to be in the range of $2.80 to $2.87 while sales should be up anywhere from 4% to 5%. That would mean a forecast for sales in the range of $741.7 billion to $748.8 billion, according to FactSet.
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Walmart’s US e-commerce sales rose by a whopping 24% in the second quarter. That figure includes its advertising-revenue business, where it sells ads that run in stores and on its website.
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FortuneWalmart’s U.S. e-commerce business, which has become an engine of growth for the retailer, rose 24%, trailing the first-quarter pace of 26%.
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Walmart’s net sales jumped 5.9% to $186.1 billion, while net income plunged 9.4% to $6.37 billion.
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FortuneWalmart’s quarterly net income was $6.37 billion, or 80 cents per share, in the three-month period ended July 31. Adjusted per-share results were 81 cents, easily topping the 74 cents Wall Street had expected, according to FactSet.
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Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 ZeroHedge That growth rate, which reflected "125 bps headwind from pharmacy deflation and brand-to-generic transfers related to maximum fair price regulation", was the slowest in more than six years. Another interesting observation: WMT is seeing less of a hit from the lack of fatties, saying that "FY27 comps reflect ~50 bps tailwind from GLP-1, vs. ~100 bps in FY25 & FY26, as script growth was more than offset by price-mix headwinds."
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02 Fortune “Ultimately, we’re trying to reinforce the everyday low-price model and save customers money,” Furner said.
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03 Bloomberg Walmart Slides 9% as Sales Slow and Stocks Retreat | Closing Bell Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Sally Bakewell, Carol Massar and Emily Graffeo. (Source: Bloomberg)
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04 New York Post Business Stock indexes fell on Thursday and hovered near two-week lows, as rising Treasury yields dented risk appetite and disappointing results from retail bellwether Walmart added pressure along with rallying oil prices.
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05 CNBC The report also raises a major question for the wider stock market: Is consumer spending, one of the key pillars of the economy, starting to slow down? "The slowdown in the funnel challenges the market's bull case," wrote Morgan Stanley analyst Simeon Gutman. WMT 5D mountain WMT 5-day chart Walmart CFO John David Rainey told CNBC that consumers are stretched thin, particularly as energy prices continue to climb. U.S. crude futures are up 53% this year thanks to the U.S.-Iran war.
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06 MarketWatch The Bentonville, Ark.-headquartered company reported revenue of $187.9 billion, a rise of nearly 6% from a year earlier, and marginally higher than analysts’ estimates of $186.7 billion, according to the London Stock Exchange Group.
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07 BBC Business The rebate stems from duties the retailer paid after President Trump imposed a wave of tariffs on imported goods last year. Retailers are receiving refunds from central government after those tariffs were ruled unlawful.
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