Key facts
- Walmart's U.S. comparable sales increased 2.6%, missing analyst estimates of 3.8%.
- Average spending per transaction grew 1.1%, indicating a slowdown in consumer spending.
- The company raised its fiscal 2027 net sales growth forecast to 4%-5% and adjusted EPS to $2.80-$2.87.
- Walmart's e-commerce sales grew 24% and its advertising business, Walmart Connect, increased by 43%.
- Third-quarter earnings per share are projected to be between 62-64 cents, below the estimated 68 cents.
- Third-quarter net sales growth is expected to be between 3%-3.75%, below the estimated 4.9%.
Walmart reported a rare miss on U.S. comparable sales for its latest quarter, as consumers scaled back spending amid rising fuel costs and economic uncertainty. The retail giant's U.S. same-store sales increased by 2.6%, falling short of the 3.8% expected by Wall Street analysts. Average spending per transaction grew 1.1%, a slowdown compared to previous periods.
Despite the sales miss, Walmart slightly raised its annual targets for the first time this year. CEO John Furner highlighted growth in the company's e-commerce division and its advertising business, Walmart Connect, which saw a 43% increase. E-commerce sales overall grew by 24%.
The company now expects fiscal 2027 net sales to grow between 4% and 5%, an increase from its previous target of 3.5% to 4.5%. Annual adjusted earnings per share are projected to be between $2.80 and $2.87, up from the prior range of $2.75 to $2.85.
However, Walmart anticipates third-quarter adjusted earnings per share to be between 62 cents and 64 cents, below the estimated 68 cents. Third-quarter net sales are projected to grow between 3% and 3.75%, also lower than the estimated 4.9% growth.
Comparable sales in Walmart's health and wellness category were impacted by the Inflation Reduction Act. Excluding this effect, core U.S. comparable sales grew 3.4%. The company has focused on lowering prices for over 7,000 items this year, supported by its advertising and third-party marketplace businesses.