Walmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club U.S. It operates supercenters, supermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; and ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites. It offers grocery items, including dry grocery, snacks, dairy, meat, produce, deli and bakery, frozen foods, alcoholic and nonalcoholic beverages, as well as consumables, such as health and beauty aids, pet supplies, household chemicals, paper goods, and baby products; and fuel and other categories. In addition, it is involved in the provision of health and wellness products covering pharmacy, optical and hearing services, over-the-counter drugs, and protein and nutrition products; and home, hardlines, and seasonal items, including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, and mattresses. Further, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Additionally, it operates digital payment platforms; offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access; and markets lines of merchandise under private and licensed brands. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.
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Retail Q2 Beats Largely Driven by Tariff Refunds, Not Consumer Strength
Four major retailers reported Wednesday morning, all beating expectations and raising guidance, but a significant portion of those profits came from a Supreme Court decision rather than stronger consumer spending. The court struck down IEEPA tariffs on February 20th, triggering roughly $166 billion in collections from some 330,000 importers, with about $100 billion refunded as of July 31st. Walmart disclosed the largest refund, while Lowe's received $80 million, about one-ninth of Home Depot's amount. Abercrombie & Fitch reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share, but the IEEPA refund contributed $1.75 per share, making underlying EPS about $2.42. Williams-Sonoma stood out with comparable brand revenue up 6.2%, accelerating from 4.8% last quarter, and raised its full-year outlook. Kohl's beat with EPS of $1.28 against roughly $0.55 expected, and Bath & Body Works beat despite a 2.3% sales decline. The macro data shows consumers feel better about today but worse about tomorrow, with core PCE rising 0.2% month over month. Investors should normalize for tariff refunds, watch how retailers deploy the windfall, and focus on companies that didn't need the help, like Williams-Sonoma and Sam's Club.
Bridge, a Citi-backed AI lending platform, has launched a $500 million direct lending fund to finance CPG brands and retail suppliers fulfilling purchase orders for America's largest retailers. Since spinning out from Citi in 2023, Bridge has deployed over $800 million and facilitated financing for hundreds of growing businesses. The fund launch follows demand from suppliers, including DogSauce, which expanded from 1,200 to over 3,000 Walmart stores with Bridge's support. CEO Rohit Mathur said the AI-driven platform analyzes orders and retailer relationships to provide faster capital than traditional lenders. Walmart's Senior Director of Global Treasury, Brandy Newhof, noted the program adds another funding option for suppliers. Bridge funds up to 100% of production costs on expected or confirmed orders, with repayment tied to retailer payment cycles.
DICK'S Sporting Goods Plunges 30.7% on Q2 Earnings Miss
Shares of DICK'S Sporting Goods plummeted 30.7% after the company reported second-quarter fiscal 2026 earnings of $3.53 per share, missing the Zacks Consensus Estimate of $3.78 per share. In contrast, Kura Oncology's shares jumped 9.6% after CEO Troy Wilson revealed in a regulatory filing that he was buying nearly 100,000 shares of common stock. Navitas Semiconductor gained 1.7% after announcing a deal to acquire Claros for $232.8 million in cash and stock. Walmart's shares declined 1% amid a broader retail decline.
Walmart shares are trading about 20% below Wall Street's consensus price target of $128.43, with Tigress Financial's Ivan Feinseth carrying a Street-high $155 target that implies roughly 45% upside. The stock fell 6.64% in the week after Walmart's Q2 FY27 earnings report despite an EPS beat and raised full-year adjusted EPS guidance to $2.80 to $2.87, as roughly 750 basis points of Q2 operating income growth came from one-time IEEPA tariff refunds. Peers Costco, Target, and Kroger held firm or rallied post-earnings, leaving Walmart as the sector's lone loser even though it carries the group's largest analyst-implied upside. Walmart's global advertising grew 38%, U.S. marketplace sales jumped 52%, and global e-commerce rose 23% to represent 24% of net sales, supporting the bull case built on high-margin ad and data revenue. The stock is down 3.81% year-to-date versus an 11.96% gain for the S&P 500.
Walmart says Sparky AI users spend 40% more per order
Walmart says customers who use its Sparky AI assistant spend 40% more per order than those who do not. CEO John Furner told analysts on the Q2 earnings call that Sparky usage is up 70% year over year, and the tool can build meal plans and add ingredients to a basket with one click. Walmart's worldwide e-commerce sales rose 23% year over year in Q2, but the company's stock fell 9% on August 20 after results missed heightened expectations. Data scientist Jose Prabhu Michael Singarayan cautioned that correlation is not causation, since Sparky users may already be bigger spenders, and technology futurist Daniel Burrus warned that AI could blur the line between advice and advertising.
Target Stock Surges 74% in 2026 as Turnaround Gains Traction
Target shares have climbed 74% in 2026 as new CEO Michael Fiddelke's turnaround plan begins to deliver results. Fiddelke, who took over in February, has focused on merchandising authority, elevating the shopping experience, stepping up technology, and investing in teams and communities, backed by $2 billion in incremental spending on operational improvements and store renovations. Negative store-level sales have turned positive in the first two fiscal quarters under his leadership, and Fiddelke doubled his sales growth target from 2% to 4% following encouraging initial results. The company also extended its dividend increase streak to 55 consecutive years, though the dividend yield has fallen below 3% as the stock has rallied. Target is now taking market share from Walmart and other competitors, and the stock still trades at steep earnings and dividend yield discounts relative to Walmart.
Trump's Canadian Tariffs Take Effect, Walmart Uses Refunds to Cut Prices
The Trump administration's 50% tariffs on Canadian goods took effect on August 22 after negotiations between the two countries broke down, threatening to raise prices on a range of everyday items as U.S. consumer prices have already risen 3.4% over the past year. Walmart said it has received substantially all of the $2.9 billion in tariff refunds it was eligible for and is using the money to lower prices for consumers struggling with inflation and affordability issues. The retailer's move comes as households face higher costs from the new Canadian tariffs and broader price pressures.
Consumer confidence falls to 89.4 in August, lowest since January
The Conference Board's consumer confidence index fell to 89.4 in August, below economists' expectations and the lowest reading since January. The decline reflects a worsening outlook for business conditions and the labor market, with last month's figure also revised downward. Factors weighing on sentiment include the ongoing war in Iran, which has pushed energy prices higher, as well as recent weak jobs data showing job losses and downward revisions to prior months.
Walmart Reports Fiscal Q2 2027 Results, Revenue Up 5.1%
Walmart reported its fiscal second-quarter 2027 results on Aug. 20, for the period ended July 31. Revenue increased 5.1% year over year after removing foreign-currency translation effects, while U.S. same-store sales excluding gasoline grew 2.6%, with higher traffic contributing 1.5 percentage points. The company has been gaining market share, including from higher-income shoppers, but growth has slowed. Walmart trades at a price-to-earnings ratio of 38 compared to the S&P 500's 30, and its dividend yield is less than 1%, trailing the index yield by about 10 basis points. The company has raised its dividend annually for 53 straight years, making it a Dividend King.
Retail drone delivery shifts from pilots to hybrid fulfilment
Drone delivery is moving from pilot projects toward a credible role in retail fulfilment, with Amazon planning to expand Prime Air to nearly 500 US cities and towns by the end of 2026 and Walmart having completed more than one million drone deliveries. Walmart is working with Wing on a network of more than 270 locations planned for 2027, while DoorDash received FAA Part 135 air-carrier certification in July and launched DoorDash Air, and Uber has agreed to introduce Zipline drone delivery through Uber Eats with a target of one million drone deliveries a day by the end of 2029. The future is likely a hybrid model in which drones handle small, lightweight, time-sensitive purchases in selected suburban and metropolitan areas, while vans and couriers continue to serve larger or consolidated orders. Regulation remains a key gateway, with the FAA proposing a Beyond Visual Line of Sight framework in 2025 and the UK Civil Aviation Authority aiming to enable routine BVLOS operations through 2027, but cost competitiveness will depend heavily on utilisation, delivery density, and increasing autonomy.
Walmart 3D printing stores could cut construction costs by 15%
Walmart is using 3D printing technology to construct walls at several of its U.S. stores, a move that could reduce construction costs by 15% and speed up production times by 33%. Contractor FMGI, which has worked with the retailer on locations in Tennessee, Arkansas, Alabama and Missouri, says its first 3D-printed job for Walmart took 40 days, but the second took just one week. FMGI uses printers made by Alquist that layer a concrete composite, and the company is now negotiating to 3D print a 50,000 square foot grocery store for Walmart, which would be the largest 3D-printed building in the world. The technology requires specially trained workers and cannot be used in severe winds, but it has already been used by Austin-based Icon to build 263 structures across the U.S. and Mexico.
Walmart Launches Scenario Fashion Brand to Boost Growth
Walmart has launched Scenario, a new women's clothing and accessories brand aimed at younger, trend-conscious shoppers, with most items priced under $25. The move comes as Walmart's U.S. comparable sales growth slowed to 2.6% in Q2 FY27, its weakest in over six years, while e-commerce sales rose 24%. Apparel and general merchandise typically carry better margins than groceries, and Walmart says its clothing sales have grown for seven consecutive quarters. The company hopes Scenario will capture spending its customers currently make at higher-priced retailers, though it faces competition from Amazon and risks from past fashion missteps.
Walmart Expands Sparky AI Assistant and India Quick-Commerce Push
Walmart is rolling out its Sparky AI shopping assistant across channels after tests linked the tool to higher customer engagement and larger average baskets. The retailer is also integrating AI into its advertising operations and working with OpenAI and ChatGPT to explore new technology-led revenue streams. Through Flipkart in India, Walmart is expanding rapid delivery and moving closer to leading quick-commerce players in that market. These moves highlight how Walmart is using AI and quick-commerce to reshape its global retail model beyond core store and payments upgrades.
Walmart Stock Falls 10% Despite Earnings Beat and Raised Guidance
Walmart shares dropped nearly 10% in a week despite beating earnings and raising full-year guidance, as investors focused on a weak third-quarter outlook and higher costs. The retailer reported adjusted EPS of $0.81 versus a $0.7413 estimate, revenue up 5.94% to $187.94 billion, and lifted full-year sales growth guidance to 4% to 5% from 3.5% to 4.5%. However, Walmart guided Q3 adjusted EPS to 62 to 64 cents, below expectations, and flagged more than $2 billion in incremental fuel-related costs, while raising capex to roughly 4% of net sales. Michael Zakkour of 5 New Digital argued the selloff is sentiment-driven and that Walmart, Target, and other discount retailers will have strong holidays as consumers trade down. Target's comparable sales grew 3.8% with traffic up 3.6%, and its stock is up 73.84% year to date, while Home Depot and Lowe's are each down roughly 14% over the past year despite positive comps.
Walmart shares suffered their worst single-day drop since 2022, falling 9.15% to $103.59 on August 20, even after the retailer beat quarterly earnings expectations. The company posted revenue of $187.9 billion versus $186.8 billion expected and adjusted EPS of $0.81 versus $0.7413 expected, but comparable sales growth slowed to 2.6% from 4.8% a year earlier, its weakest in over six years. Walmart also guided third-quarter revenue to $185.6 billion at the midpoint, about 1.4% below Wall Street's $188.3 billion estimate, and CFO John David Rainey said higher fuel prices above $4 per gallon pushed shoppers to make visible spending tradeoffs in June. Global eCommerce grew 23% and marketplace sales rose 52%, signaling the digital engine remains intact even as household budget pressure mounts.
Walmart is introducing Tap to Pay at select Walmart stores and Sam's Club locations beginning August 24, with plans to expand the contactless payment option to all U.S. stores and clubs by the end of 2026 and fuel stations by mid-2027. Customers will be able to pay with eligible contactless cards, smartphones, and smartwatches, and eligible Walmart, Sam's Club, and OnePay cards can be added to digital wallets. The rollout complements existing options like Walmart Pay and Sam's Club Scan & Go, and comes as global e-commerce sales rose 23% in the second quarter of fiscal 2027. Walmart's forward 12-month price-to-earnings ratio stands at 33.67, above the industry's 30.88, and the Zacks Consensus Estimate implies year-over-year sales and earnings per share growth of 5.1% and 9.1%, respectively.
Truflation sees July core PCE at 0.2% MoM, says Fed won't hike this year
Truflation projects the July core Personal Consumption Expenditures Price Index will rise 0.2% month over month, with the annual rate holding at 3.3%, and says the Federal Reserve is unlikely to hike interest rates for the rest of the year. The independent inflation data provider expects headline PCE to hold steady at 3.7% year over year, rising 0.19% month over month, broadly in line with market expectations. Truflation flagged four areas of increasing concern: tariffs becoming a recurring source of price resets, the Middle East conflict feeding through to jet fuel and freight costs, wage growth still running at 4.0% to 4.5%, and AI-driven electricity demand with utilities up 7.64% year over year, the highest since mid-2024. The firm also noted retail sales unexpectedly fell 0.6% in July, the first decline in nine months, and cited Walmart's slowest sales growth in six years as a sign that middle- and lower-income households are cutting back.
Walmart Posts Biggest One-Day Drop Since 2022 Despite Raised Outlook
Walmart shares fell 9.2% to $103.84 on Thursday, their worst single session since May 2022, even as the retailer reported fiscal second-quarter revenue up 5.9% to $187.9 billion and raised its full-year outlook. U.S. comparable sales rose just 2.6%, down from 4.6% a year earlier and 4.1% in the prior quarter, while pharmacy deflation tied to new drug-price regulation shaved about 125 basis points off U.S. comps. Management now expects full-year sales growth of 4% to 5% in constant currency and adjusted earnings per share of $2.80 to $2.87, but third-quarter guidance calls for sales growth of only 3% to 3.75%. The stock trades at about 37 times expected earnings, roughly 9% above its 52-week low and 23% below its high.
Walmart Falls 9% as Comparable Sales Miss Signals Consumer Caution
Walmart shares dropped more than 9% after the retailer reported its slowest comparable-sales growth in six years, with U.S. comparable sales up 2.6% versus the 3.8% Wall Street expected and more than $80 billion of market value erased in a day. The company also raised its full-year sales and profit forecasts, and e-commerce sales rose 24%, while management guided third-quarter earnings below analyst expectations. The article argues the selloff reflects a more selective consumer rather than a broken Walmart business, noting traffic held up but average basket size weakened and Walmart cut prices on roughly 11,000 items during the quarter. It suggests the real risk may lie with discretionary retailers as households postpone larger purchases, and that Walmart's higher-income customer gains could signal whether trade-down turns into simply buying less.
Walmart's Flipkart Minutes nears Swiggy Instamart in India quick-commerce orders
Walmart-owned Flipkart's quick-commerce service Minutes is now delivering 1.1 million to 1.2 million orders a day, up from about 390,000 to 400,000 in November, people familiar with the matter told TechCrunch. That puts the two-year-old service close to Swiggy's Instamart, which is delivering about 1.4 million orders a day, according to a person familiar with its operations. Blinkit continues to dominate the market with around 3.4 million to 3.6 million daily orders, followed by Zepto at about 2.4 million to 2.6 million, per recent estimates from market research firm Datum Intelligence. Flipkart Minutes now operates about 1,020 to 1,050 micro-fulfillment centers, up from 600 in January and about 340 a year ago, and is adding around 100 such facilities a month, aiming to have 1,500 by the end of 2026. About 65% to 70% of customers making purchases on the service each month are repeat buyers, while transactions per customer have increased 50% to 60% from a year earlier, and average delivery time has fallen to about 11 minutes from 13 minutes a year ago.
Walmart Fair Value Estimate Cut to $128.43 After Softer U.S. Comps
Analysts have lowered Walmart's fair value estimate from $138.37 to $128.43, feeding into a reduced price target after softer U.S. comparable sales and mixed second-quarter results. The revision reflects modeled revenue growth of 4.45% versus 4.70% previously, a net profit margin of 3.53% versus 3.52%, a future P/E assumption of 42.21x versus 45.82x, and a discount rate of 7.24% versus 7.11%. Walmart reported Q2 FY27 net sales growth of 5.9% and operating income growth of 28.8%, supported by a $2.9 billion tariff refund, while global e-commerce sales grew 23% to 24%. Despite results exceeding estimates and higher full-year guidance for 4% to 5% net sales growth and 7% to 8.5% adjusted operating income growth, shares fell in premarket trading as investors focused on slower U.S. comparable sales of 2.6% and pressure in pharmacy and health and wellness. Bullish analysts cite price reinvestment, faster growth in e-commerce, membership and advertising, and an 11.2% increase in membership and other income, while bearish analysts flag slowing U.S. comp growth, pharmacy headwinds, elevated valuation, and weaker traffic.
Major US retailers are disclosing how they plan to use billions of dollars in tariff refunds from the federal government. Walmart received approximately $2.9 billion and will lower prices in grocery and general merchandise, while Target got $994 million and used it to boost margins, contributing $1.65 to its $4.11 earnings per share. Amazon received about $600 million and will proactively refund some customers where it can trace passed-on import charges, using the rest to cut prices. Home Depot received $730 million and used $685 million to reduce cost of goods sold, while Lowe's has received $80 million and is still weighing options. The refunds follow the Supreme Court's February ruling striking down tariffs under the 1977 International Emergency Economic Powers Act, with more than $100 billion returned to businesses as of late July.
Corporate earnings this week featured a high-stakes lineup of reports from 12 notable companies across the consumer discretionary, consumer staples, information technology, industrials, and financials sectors. All 12 reporting companies beat consensus earnings estimates, with 11 delivering year-over-year profit expansion. Revenue performance remained strong, as 11 companies topped Wall Street expectations and all 12 achieved year-over-year top-line growth, leaving one firm missing consensus estimates. Among the highlights, Home Depot posted revenue of $47.9 billion and adjusted EPS of $4.92, Lowe's beat on EPS but trimmed its full-year revenue outlook to about $92.0 billion, Walmart shares dropped 9.15% after soft guidance, Target raised its full-year adjusted EPS estimate to $9.90 to $10.90, Analog Devices issued upbeat fiscal Q4 guidance, and TJX raised its full-year EPS guidance to $5.31 to $5.36.
Target Beats Walmart as Better Retail Stock Buy After Q2 Earnings
Target and Walmart both topped second-quarter earnings expectations and raised full-year outlooks, but Target emerged as the more attractive investment after its turnaround gained momentum while Walmart shares tumbled on softer U.S. comparable sales. Target's Q2 sales rose more than 5% year over year to $26.53 billion, beating estimates of $26.12 billion, with comparable sales up nearly 4% and traffic up 3.6%; adjusted EPS excluding a $752 million tariff refund was $2.46, up 20% and above the $2.30 consensus. Walmart's fiscal Q2 revenue increased nearly 6% to $187.93 billion, topping estimates of $186.23 billion, and adjusted EPS of $0.81 rose 19% and beat the $0.73 expectation, but U.S. comparable sales excluding fuel rose just 2.6%, decelerating from 4.1% in Q1 and missing expectations. Target trades at 18 times forward earnings versus Walmart's 36 times, and Target's recently increased $4.64 per share annual dividend yields around 3% compared with Walmart's $0.99 per share and roughly 1% yield. Target stock carries a Zacks Rank #2 (Buy), while Walmart holds a Zacks Rank #3 (Hold).
Walmart Inc. is finally opening its checkout lanes to Apple Pay and Google Pay. Tap to Pay will start rolling out at select Walmart shops and Sam's Club locations in the U.S. on Aug. 24, with more sites planned by the end of 2026. The move marks a big shift for Walmart, which has spent years urging buyers to use its own Walmart Pay system instead of competitor mobile wallets. Walmart also intends to roll out Tap to Pay at fuel stations by mid-2027.
Amazon Slips as Walmart Raises a Fresh Consumer Warning
Amazon shares slipped about 0.5% to $258.72 Friday afternoon, missing the broader market rebound after Walmart's weak comparable sales renewed consumer anxiety on Wall Street. Second-quarter sales jumped 20% to $200.6 billion, operating income hit $27.5 billion, and Amazon Web Services revenue surged 37% to $42.2 billion. Management expects roughly $220 billion in 2026 capital expenditures as Amazon pours cash into AI chips, data centers and cloud capacity. The stock sits 5.15% above its $246.06 GF Value estimate and trades at roughly 21 times trailing earnings.
Walmart Raises Full-Year Outlook After Q2 Earnings Beat
Walmart raised its fiscal 2027 full-year guidance after reporting second-quarter adjusted earnings of $0.81 per share on revenues of $187.94 billion, both above consensus estimates. The company now expects constant-currency net sales growth of 4% to 5%, up from 3.5% to 4.5%, and adjusted EPS of $2.80 to $2.87, up from $2.75 to $2.85. Chief Financial Officer John David Rainey said the higher outlook comes despite more than $2 billion of incremental fuel-related costs. Walmart said it received substantially all of roughly $2.9 billion of eligible tariff refunds, which contributed about 750 basis points to second-quarter operating income growth before price reinvestment, and it is directing those refunds toward customer value with more than 11,000 rollbacks in the quarter. Management asked investors to view the second and third quarters together because the refunds boosted second-quarter profit while related price investments will weigh more heavily on the third quarter.
Goldman Cuts Walmart Price Target to $130 After Selloff
Goldman Sachs lowered its price target on Walmart to $130 from $141 while maintaining a Buy rating after the retailer's shares fell more than 9% Thursday despite beating earnings and revenue estimates. Analyst Kate McShane said Walmart's valuation remains stretched and reduced her 2026 earnings-per-share forecast by about 2%. She still sees pricing investments, marketplace expansion, and improving e-commerce profitability as catalysts for market-share gains in the second half of 2026. Walmart reported adjusted earnings of $0.81 per share versus the $0.74 estimate and revenue of $187.9 billion versus expectations of $186.75 billion, and it raised its 2026 guidance. The main concern is slower U.S. comparable-sales growth, which drove the sell-off.
Walmart opens 100th EV fast-charging site in Monument, Colorado
Walmart has opened its 100th company-owned and operated electric vehicle fast-charging site at a Supercenter in Monument, Colorado. The retailer now offers EV charging at 100 stores across 20 states, with most locations featuring 8 to 16 stalls capable of delivering up to 400 kilowatts of power. Walmart+ members receive discounted charging rates, and customers can start and pay for sessions through the Walmart app. The company says it will continue expanding the network in markets where customers need greater access to convenient, dependable fast charging.
Amazon, Uber, DoorDash, and Walmart are making major new commitments to drone delivery, signaling a shift from experiment to scale. Amazon said Wednesday its Prime Air service will expand to nearly 500 U.S. cities and towns by the end of 2026, a sixfold increase from its current footprint, with new markets including Chicago, Atlanta, Cleveland, and Syracuse, N.Y. DoorDash recently launched DoorDash Air after receiving FAA certification to operate its own commercial drone service, while Uber announced a strategic partnership with Zipline that aims for 1 million drone deliveries per day by the end of 2029. Walmart told Fortune it is approaching 2 million drone deliveries and plans to build more than 270 drone delivery locations in 2027 with Wing, Alphabet's drone company, reaching more than 40 million Americans.
iFabric Corp Posts Record Q2 Revenue of $9.6 Million
iFabric Corp reported record second-quarter revenue of $9.6 million, up 65% year-over-year, driven by strong replenishment programs. Six-month revenues hit a record $37.1 million, a 202% increase from the prior year, while EBITDA turned positive at $715,000 for the quarter and a record $5.8 million for the six months. The company also recognized a tariff recovery of $925,000, with $710,000 already received in cash, and completed a capital raise adding $21 million in net proceeds to boost cash to $25 million. Gross margins dropped to 30% from 37% due to a $650,000 advertising support deduction from revenue, and selling and administration expenses increased by $800,000 in the quarter. Management noted that Walmart USA expansion is slower than expected due to the incumbent's excess inventory, and the company has not yet secured hospital network contracts.
Costco Falls 2.2% as Walmart Sales Miss Hits Retail
Costco Wholesale shares dropped about 2.2% to $935.47 on Thursday after Walmart's weaker-than-expected U.S. comparable sales raised concerns across the retail sector. Walmart's U.S. comparable sales rose just 2.6%, below the 3.8% Wall Street expected, as higher fuel costs squeezed household budgets. Costco's own operating results remain strong, with fiscal third-quarter net sales up 11.6% to $69.15 billion, adjusted comparable sales up 6.6%, digitally enabled sales up 20.8%, and membership-fee revenue up nearly 11% to $1.37 billion. The stock now trades about 9.5% below the GF Value estimate of roughly $1,030, though it still carries a valuation of around 47 times trailing earnings.
Walmart to use $2.9 billion tariff refunds to lower prices
Walmart will reinvest nearly $3 billion in tariff refunds into lowering prices as consumers face financial strain. CFO John David Rainey said on Thursday's earnings call that the company has received substantially all of the $2.9 billion refunded after the Supreme Court ruled the tariffs unlawful, and will prioritize grocery and general merchandise discounts. The retailer now has more than 11,000 items on rollback, up from roughly 7,200 at the end of the previous quarter, with CEO John Furner noting that is the highest number in recent times. Walmart's U.S. sales rose 2.6% in the latest quarter, below analysts' expectations of 3.8%, marking its first comparable-sales miss in more than five years, while customer traffic grew 1.5%, down from 3% the prior quarter. The company also raised its full-year sales outlook to growth of 4% to 5%, from 3.5% to 4.5% previously, citing first-half performance and expected gains from price investments.
Walmart shares crashed 9.7% to $103.35 on Thursday after the world's largest retailer reported a rare U.S. comparable sales miss. Comparable sales rose just 2.6%, well below the roughly 3.8% analysts expected, marking the company's first miss on that metric in more than five years, while traffic growth slowed to 1.5%. Revenue climbed 5.9% to $187.94 billion and adjusted earnings reached $0.81 per share, with global e-commerce sales up 23%, advertising revenue up 38%, and operating profit up 28.8% to $9.4 billion. Walmart also raised its full-year sales growth forecast to between 4% and 5%, but investors focused on weaker discretionary spending, a $2 billion fuel cost headwind, and a near-term outlook that failed to accelerate. Despite the selloff, the stock remains 9.08% above its $94.74 GF Value, and a $2.9 billion tariff refund gives management room to cut prices across 11,000 products.
Walmart Plunges 10% Despite Earnings Beat and Raised Guidance
Walmart shares fell about 10% on Thursday even after the retail giant beat Wall Street estimates and raised its full-year guidance, dragging all three major U.S. indexes lower. The S&P 500 was down 0.29%, the Dow Jones Industrial Average fell 0.64%, and the Nasdaq Composite dropped 0.80% as of 11:44 a.m. ET. Walmart's domestic comparable sales grew just 2.6%, well short of the roughly 3.7% analysts expected and the slowest pace since Q4 2020, while about $2.9 billion of the quarter's earnings surprise came from tariff refunds rather than core operations. The stock's 9.8% decline added to a 21.3% drop over the last three months, and with an $826 billion market cap it weighed heavily on the S&P 500 and Nasdaq. Oil prices rose about 3% after the United Arab Emirates suspended all financial transactions with Iran, and 30-year Treasury yields remained near multi-decade highs, while Treasury Secretary Scott Bessent announced bigger buybacks of long-dated debt and admitted liquidity there is very poor. Deere rose 9.4% on another beat-and-raise report, and Micron Technology gained 1.8% while SK Hynix added 3.7%.
Walmart Shares Fall 9% as CFO Warns $4 Gasoline Is Curbing Consumer Spending
Walmart shares fell more than 9% Thursday after Chief Financial Officer John David Rainey warned that gasoline above $4 is changing how consumers spend, adding to concerns over the retailer's weakest U.S. sales growth in more than six years. Rainey told analysts that when fuel prices increase and get above $4, there is perhaps a psychological impact, and consumers are making trade-offs. Walmart also expects fuel-related costs to run about $2 billion above its original forecast. Growth in customer transactions slowed to 1.5% from 3% in the previous quarter, while average spending per transaction rose just 1.1%, down from 3.1% a year earlier. The pressure comes as President Donald Trump escalates his confrontation with Iran, with Brent crude climbing toward $94 a barrel Thursday.
Walmart, Moderna, Advance Auto Parts lead midday stock movers
Several companies made notable moves in midday trading, led by Walmart, which tumbled 9% after its same-store sales grew 2.6%, short of the 3.5% expected by analysts polled by FactSet, and its earnings per share guidance for the fiscal third quarter and full year fell short of expectations. Deere jumped almost 9% after its fiscal third quarter trounced estimates, earning $5.10 per share on revenue of $11 billion versus LSEG consensus of $4.70 per share and $10.73 billion, and it lifted the lower end of its full-year net income guidance to $4.75 billion to $5 billion. Moderna plunged 25% one day after soaring 177% on promising late-stage trial results for a skin cancer vaccine developed with Merck. Advance Auto Parts slid 25% after posting revenue of $2 billion, short of the $2.04 billion expected by analysts polled by LSEG, and a same-store sales decline of 0.5% against an estimated gain of 1.4%. CrowdStrike dropped 4% after Axios reported that chief technology officer Elia Zaitsev is leaving to start an AI-focused cyber venture fund called Cognition.
Walmart reports mixed results as gas prices drag on US sales growth
Walmart reported mixed second-quarter results, with profits falling 9.4 percent to $6.4 billion while revenues rose 5.9 percent to $187.9 billion. US comparable sales grew 2.6 percent, down from 4.1 percent in the first quarter, as consumers faced gasoline prices above $4 a gallon due to the US-Iran war. The company also cited a negative effect from a price cap on 10 top-selling pharmaceutical products under new US rules that took effect January 1. Walmart raised its full-year profit and sales forecast and said it executed more than 11,000 price cuts in the quarter. Shares fell 9.4 percent in mid-morning trading.
Pre-Markets Down Despite Strong Claims, Philly Fed
U.S. stock futures fell sharply on Thursday despite strong labor market and manufacturing data, with the Dow down 440 points, the S&P 500 off 44 points, and the Nasdaq down 250 points. The 30-year Treasury yield climbed back to 5.25%, the 10-year to 4.71%, and the 2-year to 4.19%, reversing a brief rally after the Treasury announced liquidity support for long-term bonds. Oil prices remained elevated, with Brent crude at $94 per barrel and WTI at $87 per barrel, as the White House's six-month conflict with Iran continued to pressure global supply. Weekly jobless claims came in at 206,000, below estimates and the lowest since late July, while continuing claims ticked up to 1.799 million. The Philadelphia Fed manufacturing index surged to 47.4 in August, its highest since April 2021, following July's 41.4. In earnings, Walmart beat expectations with $0.81 per share versus $0.73 but fell 7.5% on weak comps and valuation concerns; Deere rose 1.4% after a 6.5% earnings beat; Advance Auto Parts plunged 18% despite a 27.2% earnings beat due to soft guidance; and Chinese stocks Alibaba, NetEase, and Daqo Energy sold off on disappointing results.
Walmart, Advance Auto Parts, Coty Fall on Disappointing Results
Walmart shares tumbled in premarket trading after the retail giant reported quarterly sales that fell short of expectations, a rare miss likely to stoke concern about the leading big-box retailer decelerating alongside a slow-growing US economy. Advance Auto Parts also sank after reporting second-quarter sales below analyst estimates, even as it boosted its adjusted earnings per share forecast for the full year while maintaining sales guidance that is below estimates at the midpoint. Coty fell after the beauty conglomerate reported fourth-quarter results that beat the average analyst estimate for net revenue but did not provide a full-year forecast, saying it expects to provide a broader outlook following a strategic review.