🕒 Created · Updated

Walmart shares fall 9% as high gas prices and tariff refunds impact consumer spending

Walmart reported a quarterly earnings beat despite a 9% drop in stock price, driven by slower-than-expected US store sales growth. The nation's largest retailer saw revenue rise 6% year-over-year to $187.94 billion, bolstered by a massive $2.9 billion tariff refund. However, CFO John David Rainey noted that high fuel prices, particularly those exceeding $4 a gallon, are creating a psychological impact on consumers, leading to trade-offs in overall spending. To offset these pressures, the company announced price cuts on over 11,000 items, funded largely by the tariff refunds. While e-commerce sales grew by 24%, foot traffic in physical stores slowed. The administration's previous tariff policies, which were ruled illegal by the Supreme Court in February, led to the government issuing refunds to major importers. While rivals like Target and TJX also reported large refunds, Walmart's stock took a sharper hit than its competitors, reflecting a softer consumer environment.

Sources