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Walmart shares drop after weaker North American sales

Despite the selloff tied to softer US results, Walmart reported $187.9 billion in net sales for Q2, up nearly 6% year over year, helped by international growth and rising advertising revenue.

Reported · Written up by our desk · Analyst Ratings

Walmart shares fell about 5% and traded near a 52-week low after weaker-than-expected Q2 sales in North America, a slowdown MarketBeat Ratings links to weakness seen in July retail sales.

The outlet said the near-term hurdle was offset by sustained growth and improving profitability, with cash flow highlighted as the key driver of Walmart’s capital returns over time. It also pointed to shareholder payouts supported by the company’s status as a Dividend King with more than 50 years of consecutive annual dividend increases.

For the quarter, Walmart reported $187.9 billion in net sales, up nearly 6% year over year and above expectations. Segment trends included US comparable sales up 2.6%, international growth of 12.8%, and Sam’s Club sales rising 8.8%.

MarketBeat Ratings added that e-commerce sales were up about 23% and advertising revenue advanced 38% overall, including 38% growth in the United States, while membership rose 17% year over year. It also cited a Moderate Buy stance from 36 analysts.

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