Walmart stock fell nearly 6% prior to the opening bell, wiping out roughly $50 billion in market value following a rare quarterly sales miss that revealed the retailer's slowest US growth in six years. Because Walmart serves approximately 280 million customers and members weekly, markets closely monitor its performance as an indicator of broader US economic health.
US comparable sales, tracking stores open at least a year, grew by 2.6%, which missed Wall Street expectations. According to company filings, customer visits increased by 1.5%, but spending per trip grew by only 1.1%, indicating that shoppers are visiting stores but buying less. AAA data noted that the national gas average reached $4.09 per gallon—up nearly $1 from a year prior—contributing to the spending squeeze as pump prices climbed. However, Sam's Club demonstrated stronger performance with 4.4% comparable growth driven by bulk-buying value hunters.
Despite the domestic sales slowdown, Walmart's headline figures beat estimates. Total revenue reached $187.9 billion, and adjusted earnings hit $0.81 per share. Operating income rose 28.8% to $9.4 billion, aided by tariff refunds that added 96 basis points to gross margin. Management announced plans to return that capital through lower prices in the second half of the year.
Looking ahead, Walmart guided third-quarter adjusted earnings between $0.62 and $0.64 per share, with constant-currency sales growth projected at 3% to 3.75%. Additional retail earnings reports and the upcoming Federal Reserve meeting in September will provide further clarity on consumer spending trends.
