WMT shares slide after Q2 comparable sales rise 2.6%, below the 3.7%-3.8% forecast, signaling consumer spending pullback.
Walmart shares fell 5.7% after reporting Q2 earnings per share of $0.81, beating estimates of $0.75, but same-store sales grew only 2.6%, missing the 3.7%-3.8% expectation. The retailer raised its annual net sales growth target to 4%-5% from 3.5%-4.5% and adjusted EPS guidance to $2.80-$2.87 from $2.75-$2.85.
The miss in comparable sales, a key consumer spending indicator, was driven by a 900 bps drag in the health and wellness category due to the Inflation Reduction Act’s maximum fair price implementation. Walmart’s results are closely watched as a bellwether for U.S. consumer behavior, particularly among price-sensitive shoppers.
Despite the earnings beat, the weaker-than-expected sales growth overshadowed the positive revisions, reflecting broader concerns about consumer spending amid rising costs.