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Walmart Beats Estimates but U.S. Store Sales Slow to Six‑Year Low

The gap between headline profits and weak in‑store demand points to tightening household budgets and leaves investors watching whether price cuts will restore momentum.

Overview

  • Walmart, which reported fiscal second‑quarter results on Thursday, Aug. 20, beat estimates with about $187.9 billion in revenue and $0.81 in adjusted earnings per share.
  • U.S. comparable‑store sales grew just 2.6%, the slowest pace since 2020, a shortfall the company said reflected roughly 80 basis points from new pharmacy‑pricing rules and softer spending as gasoline topped $4 per gallon.
  • The company received about $2.9 billion in tariff refunds and said it will deploy much of that money into temporary price rollbacks and lower shelf prices to try to drive traffic and share.
  • Walmart’s e‑commerce business rose about 23% and its advertising business surged roughly in the high‑30s percent range, and management raised full‑year FY27 sales and EPS guidance despite the comp weakness.
  • Investors sold off the stock, knocking it down roughly 9% in one day and prompting several firms to cut price targets while many kept Buy ratings, leaving markets to watch whether price investment will produce sustained sales gains next quarter.