– Walmart Inc. warned rising fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers.
Most Read from Bloomberg The world’s largest retailer said comparable sales in US stores, excluding fuel, rose 4.1% in the latest quarter, slightly better than what Wall Street analysts were expecting
It also forecast adjusted profit for the second quarter that missed expectations. The mixed results show that the company continues to gain market share across income levels with its focus on low prices, fast delivery and wide assortment. But that emphasis on affordability is facing pressure as inflation accelerates and the conflict in Iran drives up fuel prices.
Walmart shares fell as much as 8% on Thursday, the steepest intraday drop since November 2023. The stock had risen 17% so far this year as of Wednesday’s close. Shares of some of Walmart’s peers, including Target and Kroger, also fell in regular trading on Thursday. “The high-income consumer is spending with confidence in many categories, whereas the low-income consumer, we can tell, is more budget-conscious, trying to navigate certain financial distress,” Chief Financial Officer John David Rainey said in an interview with Bloomberg News.