Walmart Stock Slumps as Q3 Outlook Falls Short
Walmart Inc.'s (NASDAQ: WMT) shares plummeted on Thursday after its U.S. sales growth slowed to its weakest pace since 2020. The company's third-quarter outlook fell short of Wall Street estimates, with adjusted earnings expected between 62 cents and 64 cents per share, below the consensus estimate of 68 cents.
In contrast to this underwhelming forecast, Walmart reported a stronger-than-expected second quarter, with adjusted earnings of 81 cents per share beating the consensus estimate of 74 cents. Global e-commerce sales rose 23%, with Walmart U.S. growing 24% and Sam's Club U.S. increasing 26%. International sales grew nearly 8% in constant currency.
The company attributed its weaker-than-expected third-quarter outlook to maximum fair price regulations, which reduced second-quarter comparable sales by about 125 basis points. Walmart expects a similar headwind for fiscal 2027. The retailer has also rolled back prices on over 11,000 U.S. items since late July.