Walmart stock drops as sales growth slows, customers make 'trade-offs' amid high fuel costs

Walmart reported Q2 earnings that beat estimates but showed slowing US sales growth and consumer spending. Comparable sales grew 2.6% (excluding fuel), missing expectations. Shares fell 9%. The company cited price pressures and federal drug price negotiations as challenges. Analysts note consumer spending may be slowing, impacting the broader economy.

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 (WMT) reported Q2 EPS of $0.81, beating estimates of $0.74. Revenue was $187.94B, up 5.9% YoY. E-commerce sales rose 23% and advertising revenue climbed 38%. The company raised its full-year sales and EPS guidance. Walmart expects tariff refunds of $2.9B, aiming to lower prices amid consumer spending pressures.

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.