Walmart shares fall 9.2% as US sales growth slows

Walmart shares fell 9.2 percent on Thursday after the retailer reported slower US sales growth as higher gasoline prices put pressure on shoppers, even as it raised its full-year profit and sales forecast.

US comparable sales rose 2.6 percent in the second quarter, compared with 4.1 percent in the first quarter. Walmart said consumers faced gasoline prices above $4 a gallon for much of the quarter because of the US-Iran war.

Chief Financial Officer John David Rainey told analysts the company was seeing “some incremental pressure on the consumer” from higher fuel prices. Executives said Walmart made more than 11,000 price cuts during the quarter.

Walmart reported profit of $6.4 billion, down 9.4 percent from a year earlier. Revenue rose 5.9 percent to $187.9 billion.

The company said it directed much of the benefit from US tariff refunds toward investments aimed at attracting customers affected by inflation. It also cited a negative effect from a price cap on 10 top-selling pharmaceutical products under new US rules that took effect on January 1.

Walmart said US results were helped by market share gains across income groups, led by upper-income households. It also pointed to growth from newer businesses, including membership and advertising.

Rainey said Walmart expected a $2 billion drag from fuel costs in 2026. He told CNBC that sustained higher oil prices were likely to mean higher prices for consumers.

GlobalData Managing Director Neil Saunders called the figures “another set of strong” quarterly results but said US comparable growth was the slowest in six and a half years. Briefing.com described Walmart’s underlying business as “healthy” but said softer US trends were a disappointment after results from Target on Wednesday.