Walmart Posts Strong Financial Results And Raises Guidance

Walmart reported Q2 earnings and revenue above expectations, but same-store sales grew only 2.6% vs. 3.5% forecast. Guidance was disappointing, with shares down 7%. CFO cited consumer strain from high energy prices and $2B cost headwinds. Some analysts remain bullish, but concerns about consumer spending persist.

Walmart reported nearly $3 billion in tariff refunds, boosting profit but slower U.S. same-store sales growth at 2.6% hurt sentiment. Stock fell 9%. Higher fuel costs and drug pricing rules impacted results. CEO Furner noted consumer pressure from inflation. Walmart expects $2 billion in added fuel costs this year.

The TSX opened lower on Thursday, with mining losses offsetting energy gains. Walmart shares dropped 8% after missing sales and earnings forecasts. U.S. stocks fell, with the Dow, S&P 500, and Nasdaq all declining. Oil prices rose due to Iran-U.S. tensions, while gold prices fell.

Walmart reported its slowest U.S. comparable sales growth in six years at 2.6% for Q2, missing estimates. Shares fell 8%. Despite this, revenue and profit topped expectations, boosted by a $2.9B tariff refund. E-commerce grew 24%. Walmart expects higher fuel costs and cautious consumer spending to impact results.

Walmart's stock declined as sales growth slowed due to high fuel costs, according to the company. It reported receiving $2.9 billion in tariff refunds, which were reinvested in customer experience and pricing. The company expects continued impact from Q2 pricing actions in Q3.

Dow Jones fell 349.23 points as Walmart's weak sales growth overshadowed its earnings beat, with shares down 6%. U.S. same-store sales rose 2.6%, below the 3.8% estimate. Treasury yields rebounded, and oil prices rose due to Iran tensions. Other movers: SpaceX (-1.61%), Alibaba (-3%), and crypto-related stocks (+5% to +10%).