Walmart offers cautionary outlook after slowing US sales growth in second quarter
AP News • • general
Key Points:
- Walmart reported its slowest U.S. comparable sales growth in six years for the second quarter, with a 2.6% increase, down from 4.1% in the previous quarter, causing shares to drop 6% pre-market.
- Excluding the wellness category affected by Medicare drug pricing caps, comparable sales rose 3.4%, still below analysts’ forecast of 3.8%, while U.S. e-commerce growth slowed to 24% from 26% in the prior quarter.
- The company’s quarterly net income was $6.37 billion (80 cents per share), beating expectations, with sales up 5.9% to $187.94 billion, surpassing analyst estimates.
- Walmart provided a cautious outlook for Q3 and the full year, projecting lower earnings per share and sales growth than analysts anticipated, reflecting concerns over consumer spending amid inflation and economic uncertainty.
- As a key indicator of U.S. consumer behavior, Walmart’s performance highlights ongoing challenges from rising costs and weak retail sales data, with notable market share gains among higher-income households.
