Walmart reported its weakest quarterly comparable sales growth in six years on Thursday, marking the first miss against analyst expectations in at least five years as U.S. consumers reduced discretionary spending.
The retailer’s same-store sales grew 2.6% in the second quarter, below the 3.8% estimate from LSEG data. Excluding pharmacy, growth was 3.4%. Store traffic growth slowed to 1.5% from 3% in the first quarter, while average spending per transaction rose 1.1%, down from 3.1% a year earlier. Shares fell as much as 10% to a nine-month low of $102.85 before closing down 9.1%, erasing more than $80 billion in market value—the largest single-day drop since May 2022.
E-commerce sales increased 24% year-over-year, while Walmart Connect advertising revenue surged 43%. Membership revenue grew 17%, and the company doubled the number of units delivered within 30 minutes compared with a year ago. Despite the slowdown, Walmart raised its fiscal 2027 net sales growth target to 4%-5% from 3.5%-4.5% previously, while lifting adjusted EPS guidance to $2.80-$2.87 from $2.75-$2.85.
Third-quarter adjusted EPS is now forecast at 62-64 cents, below the 68-cent estimate. Walmart also expects an additional $2 billion in fuel costs above prior forecasts, citing recent price increases above $4 per gallon. The company cited price rollbacks on 11,000 products and $2.9 billion in tariff refunds as factors supporting margins, though pharmacy sales were pressured by lower prices under the Inflation Reduction Act’s drug pricing program.
Analysts noted the slowdown reflects broader consumer caution. Brian Jacobsen, chief economic strategist at Annex Wealth Management, compared the trend to a slowdown at Nvidia, suggesting Walmart’s advantage in attracting budget-conscious shoppers may be waning. Walmart CFO John David Rainey highlighted the psychological impact of fuel prices above $4, noting consumers are making trade-offs in discretionary spending.
John Furner, CEO of Walmart U.S., emphasized the company’s focus on maintaining its position as the lowest-cost provider. UBS analyst Michael Lasser maintained a bullish stance despite the miss, stating the report should intensify debate over consumer resilience.
