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Walmart stock tumbles 9% after outlook disappoints Wall Street
The retailer beat profit expectations on a $2.9 billion tariff refund, but U.S. comparable sales rose just 2.6%, below FactSet estimates.
- Walmart shares tumbled more than 8% on Thursday after the retailer reported its slowest U.S. comparable-sales growth in six years at 2.6% and issued cautious third-quarter guidance projecting sales up 3% to 3.75%.
- Chief Financial Officer John David Rainey said rising gasoline prices above $4 and federal limits on Medicare drug prices are forcing consumers to make trade-offs, pressuring low-income shoppers' spending.
- Boosted by a $2.9 billion tariff refund, Walmart's quarterly profit reached $6.37 billion, topping Wall Street expectations while the company temporarily lowered prices on 11,000 items.
- Walmart's domestic e-commerce sales rose 24%, now representing 23% of total U.S. business, as the retailer captures a larger share of wealthier households earning over $100,000 annually.
- The company expects to book an additional $2 billion in incremental fuel costs this year while projecting full-year sales growth between 4% and 5%, signaling sustained economic headwinds.
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21 Articles
21 Articles
Wall Street sinks as bond yields rise, Walmart results disappoint
·London, United Kingdom
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Coverage Details
Total News Sources21
Leaning Left6Leaning Right3Center9Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
Factuality
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