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Walmart shares fell over 9% after reporting the slowest U.S. store sales growth in six years

Walmart shares dropped more than 9% following the reporting of the slowest U.S. store sales growth in six years. While the company beat adjusted earnings per share expectations and raised its full-year sales guidance, the stock fell because U.S. comparable sales rose only 2.6%, falling short of the 3.8% expected by Wall Street. CFO John David Rainey attributed the slower growth to a softer consumer environment and higher fuel prices, which have created a psychological impact on shoppers. Despite the pullback, the company remains in a strong position, bolstered by a $2.9 billion tariff refund and a 23% global e-commerce growth. Management plans to use the tariff refunds to implement price cuts for consumers. Analysts suggest the selloff reflects a shift in consumer sentiment rather than a fundamental breakdown of the business. While the American consumer remains active, they are becoming more selective and price-conscious. Walmart continues to operate from a position of strength, maintaining its status as a retail bellwether while navigating a more cautious spending environment.

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