Key facts
- Walmart's U.S. comparable sales grew 2.6% in the second quarter.
- This is the slowest growth rate in six years.
- U.S. e-commerce sales increased 24%.
- The company provided a cautious outlook for the year.
Walmart reported its slowest U.S. comparable sales growth in six years, with a 2.6% increase in the second quarter, down from 4.1% in the previous quarter. The retail giant offered a cautious outlook, reflecting consumer caution amid persistent price pressures.
Walmart's performance is a key indicator of U.S. consumer spending. The slowdown suggests that persistent inflation and economic uncertainty are impacting household budgets, potentially signaling broader retail challenges ahead.
Walmart experienced its slowest U.S. comparable sales growth in six years during its most recent quarter, with a 2.6% increase, down from 4.1% in the prior quarter. The retail giant also offered a cautious outlook for the year, which sent its shares down 6% in pre-market trading.
Excluding its wellness category, which includes pharmacies, comparable sales rose 3.4%. Walmart cited federal legislation requiring pharmacies to dispense some high-cost Medicare drugs at capped prices as a factor impacting this segment. Analysts had projected a 3.8% increase in comparable sales.
Walmart's U.S. e-commerce business, a key growth driver, saw a 24% increase, slightly trailing the 26% growth from the first quarter. The company's results are being closely watched as an indicator of consumer behavior amid ongoing price pressures and growing pessimism about the economy, with consumers struggling with higher costs for essentials like gas and groceries.