U.S. retail giant Walmart reported quarterly U.S. same-store sales growth of 2.6%, below analyst expectations of 3.8%, as elevated gasoline prices weighed on consumer spending. The company raised its full-year revenue guidance to a range of 4% to 5% from 3.5% to 4.5% previously, citing strong performance in its e-commerce segment.
The adjusted operating income benefited by 750 basis points from tariff refunds, which Walmart continued to pass through as price reductions on more than 7,000 items. Adjusted earnings per share are now projected at $2.80 to $2.87, up from prior guidance. E-commerce revenue rose 24%, supported by a 43% increase in advertising revenue and growth in the online marketplace.
Healthcare segment revenue declined due to price caps implemented under the U.S. Inflation Reduction Act, which limited pricing flexibility. Excluding this impact, core U.S. sales would have grown 3.4%. Food, Walmart’s largest category, posted mid-single-digit percentage growth.
Chief Executive John Furner emphasized the resilience of discretionary spending despite macroeconomic pressures, attributing the raised outlook to e-commerce momentum. The results serve as a key barometer for U.S. consumer sentiment ahead of the back-to-school and holiday shopping seasons, when price-conscious shoppers typically prioritize essentials like groceries.
