Walmart is tumbling after posting disappointing guidance while quarterly sales fell short of expectations, a rare miss for the world's largest bricks and mortar retailer, that is stoking concerns about the leading big-box retailer decelerating alongside a slow-growing US economy.
Comp store sales at US stores open at least a year, excluding fuel, rose 2.6% in the second quarter, far below the lowest analyst estimate compiled by Bloomberg.
That growth rate, which reflected "125 bps headwind from pharmacy deflation and brand-to-generic transfers related to maximum fair price regulation", was the slowest in more than six years. Another interesting observation: WMT is seeing less of a hit from the lack of fatties, saying that "FY27 comps reflect ~50 bps tailwind from GLP-1, vs. ~100 bps in FY25 & FY26, as script growth was more than offset by price-mix headwinds."
Here are some other highlights from the fiscal second quarter:
- Adjusted EPS 81c, beating estimates 74c, excludes the impact, net of tax, from a net loss of $0.12 on equity and other investments, and net benefit of $0.11 from a certain tax matter
- Revenue $187.94 billion, +5.9% y/y, beating estimates of $186.87 billion
- Walmart-only US stores comparable sales ex-gas +2.6%, missing estimates of +3.67%
- Sam’s Club US comparable sales ex-gas +4.4%, beating estimates of +4.04%
- Operating cash flow $19.7 billion
