WMT shares lag the S&P 500 as fuel costs pressure discretionary spending among its core customer base.
Walmart CEO John Furner identified gasoline prices as a “stress point” for U.S. households, citing pressure on lower-income consumers. The retailer’s CFO noted customers are buying fewer than 10 gallons per fuel stop, the lowest since 2022.
WMT shares have risen 5% year-to-date, trailing the S&P 500’s broader gains. Higher fuel costs inflate business expenses, squeezing budgets for discretionary purchases, particularly among Walmart’s price-sensitive shoppers.
The company reported mixed spending trends, with higher-income customers spending confidently while lower-income shoppers show signs of financial strain.