Walmart Stock Falls 6% After Rare Sales Miss as Consumers Cut Spending

Walmart shares fell about 6% in premarket trading Thursday after the retailer reported a rare miss in U.S. comparable sales, raising fresh concerns about consumer spending as higher fuel costs push households toward essentials.

U.S. same-store sales rose 2.6% in the quarter, below the 3.8% increase expected by analysts. It was Walmart’s weakest comparable-sales growth in roughly six years and a sharp slowdown from the 4.1% increase reported in the previous quarter.

The reaction was notable because Walmart has generally benefited when consumers trade down during periods of economic pressure. Its previous WMT outlook had already highlighted how closely investors were watching guidance and consumer demand.

Walmart US Sales Miss as Store Traffic Slows

Higher gasoline prices and pressure on household budgets appear to be changing spending patterns.

Customers continued buying groceries, Walmart’s largest category, but discretionary merchandise remained softer. Store traffic increased only 1.5%, down from 3% in the previous quarter, while average spending per transaction rose 1.1%.

Pharmacy sales also weighed on the result after lower drug prices negotiated through the Inflation Reduction Act reduced spending per visit. Excluding that effect, Walmart said core U.S. comparable sales would have risen 3.4%.

The slowdown comes at a sensitive moment for U.S. consumers. Higher energy costs have already become a broader macro issue, with elevated oil prices feeding into transportation expenses and disposable income.

E-Commerce and Advertising Help Walmart Raise Outlook

The weak comparable-sales figure was partly offset by continued strength in Walmart’s higher-growth businesses.

E-commerce sales increased 24%, while Walmart Connect, its U.S. advertising business, grew 43%. Total quarterly revenue reached about $187.9 billion, up nearly 6% year over year.

Walmart also raised its fiscal 2027 net sales forecast to growth of 4% to 5%, from the previous 3.5% to 4.5% range. Adjusted earnings are now expected at $2.80 to $2.87 per share, compared with the previous $2.75 to $2.85 outlook.

That stronger full-year guidance contrasts with a softer third-quarter forecast. Walmart expects adjusted EPS of $0.62 to $0.64, below Wall Street estimates around $0.68.

The company has also continued lowering prices across thousands of products while using advertising, marketplace revenue and tariff refunds to support margins.

For investors, the question is whether those businesses can offset slower store growth. Walmart stock had previously held up well as management focused on groceries, technology and logistics, helping WMT shares outperform during periods of weaker consumer confidence.

The results also contrast with Target, which raised its annual forecasts for a second time this year after comparable sales and traffic improved.