Walmart sinks 9.4% after weak U.S. comparable sales
Walmart shares fell 9.4% after the retailer reported adjusted EPS of 81 cents versus 74-cent consensus, revenue of $187.9 billion, and U.S. comparable sales growth of 2.6% versus 3.8% expected, while raising full-year adjusted EPS guidance to $2.80-$2.87.
The Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA ), shed 700 points on Thursday as Walmart (NASDAQ: WMT ) shares sank 9%.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE: SPY ), lost 0.7% and the Nasdaq Composite, tracked by the Invesco QQQ Trust (NASDAQ: QQQ ), dropped 1% as the 10-year Treasury yield climbed more than 5 basis points to 4.706% and the 30-year yield rose more than 5 basis points to 5.251% after spiking earlier this week to its highest level in nearly 20 years.
The Treasury said it will at least double repurchases of 10-, 20- and 30-year debt in the coming months, and Treasury Secretary Scott Bessent said the buyback operation could be larger than the $4 billion announced.
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On Thursday, the retail giant’s shares dropped 9.4% to $103.62, marking its sharpest single-session decline in four years.
Despite beating earnings expectations with an adjusted EPS of 81 cents against a 74-cent consensus and revenue of $187.9 billion, U.S. comparable sales rose just 2.6% against the expected 3.8%.
The margin beat was heavily reliant on tariff refunds.
The company did raise its full-year adjusted EPS guidance to $2.80-$2.87, but investors remain cautious about its future performance.
Consumer Spending Concerns Weigh on Market Walmart’s earnings report signals potential caution in consumer spending, a critical component of the U.S. economy.
The retailer’s Q2 earnings reflect a weakening consumer, even as spending has mostly continued.
Walmart’s results provided a contrary data point, adding pressure to the broader stock market.
As the largest U.S. retailer, Walmart’s performance is a key indicator of consumer health.
Thursday’s report suggests that the market’s assumption of continued consumer spending may need reevaluation.
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