Earnings
Home›Earnings›Previews›Walmart U.S. same-store sales miss lifts analyst conce…
Walmart U.S. same-store sales miss lifts analyst concerns
The quarter delivered adjusted profit of 81 cents per share and net income of $6.4 billion, but U.S. same-store sales excluding fuel grew just 2.6%, the slowest since early 2020.
Walmart shares dropped nearly 9% intraday on Aug. 20 after the company reported a mixed financial quarter, with an analyst at Mizuho Financial Group calling it a worst-case scenario because results fell short of expectations.
The retailer posted $6.4 billion in net income for the quarter ended July 31. Adjusted earnings came in at 81 cents per share versus a 74 cents forecast, and revenue rose 5.9% to $187.9 billion, but the key issue was U.S. same-store sales growth missing expectations.
Excluding fuel, U.S. sales grew 2.6%, marking Walmart’s lowest growth period since early 2020. Walmart CFO John David Rainey said the company was seeing a softer consumer environment than in February, when it set initial forecasts, and cited rising gas prices as shoppers became more selective.
The article notes the national average gas price is $4.10 per gallon, up from $2.98 before the Iran war began, while inflation is cited at 3.4%. It also points to potential headwinds from shrinking pharmacy revenue as the Trump Administration pursues lower prescription drug costs, including GLP-1 drugs.