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Walmart shares dip after US sales growth slows
Walmart CFO John David Rainey said incremental consumer pressure showed up alongside higher gas prices, contributing to the post-earnings reaction.
Walmart’s stock slid after results, with the move driven largely by how the quarter compared with elevated Street expectations rather than any broad deterioration in the retailer’s fundamentals, according to Yahoo Finance.
The outlet pointed to signs that Walmart US slowed, including decelerating same-store sales and slower growth versus the first quarter, which the market did not want to see given analysts’ prior optimism.
Walmart is also a global business, the article noted, but it said Walmart US remains the main driver of performance, with expectations rising due to the company’s strong track record over the past two years.
Yahoo Finance quoted Walmart CFO John David Rainey saying the company feels good about the business overall but has seen incremental pressure on the consumer relative to earlier in the year, alongside higher gas prices, as part of the explanation for the softer tone.