Walmart's Worst Day in 4 Years Helps Drive Broader Stock Drop

Walmart reported its slowest quarterly sales growth in six years, attributing it to high fuel prices. Despite raising annual forecasts, shares fell 10% to $102.85. The company announced price cuts on 11,000 products, funded partly by $2.9bn in tariff refunds. Comparable sales grew 2.6%, missing estimates. E-commerce sales rose 24%. Walmart expects fiscal 2027 net sales growth of 4-5% and adjusted EPS of $2.80-$2.87.

Walmart plans to use $2.9 billion in tariff refunds to lower prices on food, general merchandise, and fashion items, according to its CFO. The refunds follow a Supreme Court ruling on tariffs. Analysts suggest this could help Walmart stay competitive, but not drastically reduce prices. Other retailers' plans for their refunds remain unclear.

Walmart's stock fell 10% after Q2 results showed same-store sales growth of 2.6%, below estimates. UBS analyst Michael Lasser maintains a buy rating, citing stable core business, automation, and high-margin revenue streams. Walmart's eCommerce and advertising grew 24% and 38% respectively. The company raised full-year guidance to net sales growth of 4.0%-5.0% and adjusted EPS of $2.80-$2.87.

Walmart reported its slowest quarterly sales growth in six years, with comparable sales up 2.6% (3.4% excluding pharmacy). The company raised annual sales and profit forecasts but shares fell 10% to $102.85. Walmart announced price cuts on 11,000 products, funded by $2.9B in tariff refunds. CFO John David Rainey attributed the slowdown to high fuel costs. The company expects fiscal 2027 net sales growth of 4-5% and adjusted EPS of $2.80-$2.87.

Walmart, Amazon, and Target reported Q2 earnings showing AI-driven sales growth. Walmart's eCommerce grew 23%, with AI assistant users spending 40% more. Amazon's Alexa for Shopping saw active users nearly double. Target's digital traffic from AI platforms grew over 3.5x faster than the industry average. Albertsons saw a 10-26% increase in order value with AI tools. Shopify's AI-referred traffic and orders tripled, but AI's impact on discovery-driven retail remains uncertain.

U.S. stocks fell sharply on Thursday, with the Dow, Nasdaq, and S&P 500 all declining. Crude oil prices surged due to Middle East tensions, and Walmart's shares dropped over 9% after weak earnings and guidance. Treasury yields rebounded, and retail and airline stocks also saw declines.