WMT warns of pressure from higher gas prices despite beating Q1 sales estimates with a 4.1% U.S. comp gain.
Walmart shares fell in early trading after the retailer issued cautious guidance, citing pressure from elevated fuel costs. The company reported a 4.1% rise in U.S. comparable sales for the first quarter, slightly above the 4.0% consensus estimate, driven by a 3.0% increase in transactions.
Analysts had anticipated stronger momentum, but Walmart’s outlook tempered expectations. The prior quarter saw a 5.7% comp sales gain, highlighting a slowdown in growth. Fuel prices, which surged in recent months, are expected to weigh on consumer spending and margins.
Investors reacted by selling WMT shares, reflecting concerns over the retail giant’s ability to sustain growth amid macroeconomic headwinds.