Walmart Shares Plunge After Slowest Sales Growth in Six Years

Walmart shares experienced their largest decline since July 2022, dropping as much as 10% to a nine-month low of $102.85. The slump followed a second-quarter report showing U.S. comparable store sales growth of 2.6%, the lowest in six years and a miss against analyst estimates of approximately 3.7%.

Management attributed the slowdown to a combination of federal drug price negotiations, pharmacy deflation, and high gasoline prices averaging $4.10 per gallon, which forced consumers to make spending trade-offs. To combat softening demand, the company announced price rollbacks on 11,000 items, funded by a $2.9 billion one-time tariff refund. This move contrasts with competitor Target Corporation, which declined to directly link its own $1 billion tariff refund to price cuts.

Despite the sales miss and cautious third-quarter guidance, the company reported total revenue of $187.9 billion and a surge in global e-commerce sales of 23%. Walmart raised its full-year net sales growth forecast to 4–5% and adjusted its annual earnings per share outlook to $2.80–$2.87.

The report sparked broader concerns regarding U.S. consumer resilience. This coincided with warnings from President Donald Trump that fuel costs could remain high due to the war in Iran, further impacting household financial health.