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Walmart shares drop after slowest comparable sales growth in six years
Walmart reported U.S. comparable sales growth of 2.6% and cut prices on about 11,000 items during the quarter, while raising full-year sales and profit forecasts.
Walmart shares fell more than 9% after the retailer reported its slowest comparable-sales growth in six years, according to Yahoo Finance. U.S. comparable sales rose 2.6%, below a 3.8% expected by Wall Street, and the selloff wiped out more than $80 billion of market value in a day.
The piece said traffic held up reasonably well, but customers spent less on average, pointing to a shift in what shoppers were doing inside stores. Walmart also cut prices on roughly 11,000 items during the quarter, a move the outlet framed as a potential signal of increased customer selectiveness.
Despite the drop in the stock, Walmart raised its full-year sales and profit forecasts, and Yahoo Finance said the guidance argues against viewing the quarter as evidence the business suddenly broke.
The outlet added that it sees a broader consumer pattern, where pressure shows up more when purchases can be delayed, and it noted that Walmart’s e-commerce sales rose 24% in the quarter. It also highlighted Walmart’s efforts to build higher-margin businesses, including advertising.