Walmart reports slowest US sales growth in six years

Walmart's second-quarter results revealed the slowest US comparable sales growth in over six years, at 2.6%, missing analyst expectations and sparking a sharp stock decline. The company attributed the slowdown to high gasoline prices, lower drug prices, and a shift to e-commerce, while also receiving a $2.9 billion tariff refund that it plans to use for price cuts. Source: CNN Source: LA Times

Financial performance

Net income fell 9.4% to $6.366 billion, while net sales rose 5.9% to $186.1 billion. Source: Infobae Despite the miss, Walmart raised its full-year guidance, expecting sales growth of 4-5% and operating income growth of 7-8.5%. Source: Infobae The stock dropped over 8% in early trading. Source: LA Times

Consumer pressures

High gasoline prices are reducing consumer spending, with CFO John David Rainey noting a "psychological impact" when prices exceed $4 per gallon. Source: CNN Lower-income shoppers are spending cautiously, and the company expects $2 billion in additional fuel costs this year. Source: LA Times Excluding health and wellness, comparable sales rose 3.4%, still below projections. Source: LA Times

Strategic responses

Walmart is using the $2.9 billion tariff refund to lower prices on 11,000 items. Source: LA Times In Mexico, Walmart de México y Centroamérica is implementing a fixed-price strategy on 4,000 products for 90 days to address cautious consumer behavior amid inflation. Source: Milenio E-commerce grew 24% and now represents 23% of US business. Source: LA Times