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US same-store sales rose 2. 6 percent in the second quarter, according to the company’s earnings released on Thursday, falling short of the 3. 8 percent forecast by analysts at LSEG.
That marked the slowest quarterly increase in six years.
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The Bentonville, Arkansas-based retailer said heightened petrol prices are to blame for the slowdown in spending.
Sales dropped in Walmart’s US pharmacy business and also dipped elsewhere. Overall, quarterly revenue rose 3. 4 percent, the slowest pace since the first quarter of fiscal 2023.
Consumers are spending more in the checkout line — 1. 1 percent higher than the previous quarter — but it is still well below the 3. 1 percent jump this time last year.
That comes as consumer inflation ticked up last month by 0. 1 percent from the month prior and 3. 4 percent from this time last year, according to the US Labor Department’s Bureau of Labor Statistics (BLS).
The price of fresh fruit jumped 2. 2 percent from a month ago, butter by 0. 8 percent, and fresh fish by 1 percent, according to the BLS report.
This as overall retail sales dipped in July, dropping 0. 6 percent, marking the biggest decrease since May 2025, according to the US Commerce Department data released last week.
Walmart said, however, that price changes took effect in July, so the effects might be more apparent in the company’s next earnings report.
However, fewer consumers are venturing into brick-and-mortar stores, with foot traffic increasing by 1. 5 percent for the quarter, a drop from 3 percent in the previous quarter.
However, Walmart’s e-commerce sales are on the upswing, with sales jumping 24 percent in the US.
As a result, Walmart upgraded its forecast for net sales growth, from 3. 5–4. 5 percent to 4–5 percent.
But that is limited because in-store sales are still the company’s premier offering.
Other big-box retailers also reported earnings in the last couple of days, with a pullback in consumer spending being an undertone. TJX, the parent company of TJ Maxx and Marshalls, reported sales growth of 1 percent for the quarter, a slowdown from 6 percent the quarter before.
On Wall Street, Walmart is taking a hit on the heels of its earnings report, with shares down by 9. 6 percent since the market opened. Other big-box retailers are lower, but not showing nearly as stark a drop.
TJX stock was down 1. 7 percent, and Target was down by 0. 1 percent.
Fontes
Informação baseada em material público de Al Jazeera, reescrito pela redação ULTRA NOTÍCIAS.
