Walmart stock fell sharply after the retailer reported its slowest U.S. comparable-sales growth in six years and offered a cautious near-term earnings outlook. The company’s results made Walmart stock one of the most searched business topics in the United States on August 21.
The Associated Press reported that U.S. comparable sales rose 2.6% in Walmart’s second quarter, down from 4.1% in the first quarter and below the expectations of analysts polled by FactSet. The company’s shares fell more than 8% during Thursday’s trading and helped pull the broader U.S. stock market lower.
Walmart still exceeded expectations on several headline figures. AP reported quarterly net income of $6.37 billion, or 80 cents per share, while adjusted earnings were 81 cents a share. Revenue increased 5.9% to $187.94 billion, above the consensus estimate cited in the report.
Axios separately reported that the company’s weaker same-store sales raised questions about consumer finances, even as Walmart lifted its full-year sales outlook. Walmart said annual sales could rise 4% to 5%, but its third-quarter adjusted earnings guidance of 62 to 64 cents a share disappointed investors focused on the near-term outlook.
The figures do not mean the retailer is losing market share. Walmart said e-commerce sales continued to grow and that it was using tariff refunds to lower prices on thousands of products. Investors are weighing that longer-term position against higher fuel costs, pharmacy-related pressure and signs that shoppers are becoming more cautious.
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