Walmart shares plunged nearly 10% on Thursday after the retail giant reported its slowest U.S. comparable-sales growth in more than six years, raising concerns about weakening consumer spending.
Walmart’s U.S. comparable sales increased 2.6% in the second quarter, down sharply from 4.1% in the previous quarter and below analysts’ expectations of around 3.8%. The weaker performance came as shoppers faced higher gasoline prices and growing pressure on household budgets.
The sharp decline erased more than $80 billion from Walmart’s market value, with shares closing down about 9.2% at $103.84. The stock suffered its biggest one-day decline in more than four years.
The disappointing sales figures came despite Walmart reporting strong overall quarterly results. Revenue rose 5.9% year over year to $187.94 billion, while adjusted earnings reached 81 cents per share, beating Wall Street expectations.
Walmart also highlighted strong e-commerce growth, with online sales increasing 24%. The company raised its full-year forecast, expecting fiscal 2027 sales growth of 4% to 5% and adjusted earnings per share of $2.80 to $2.87.
However, investors remained concerned about Walmart’s outlook for the coming quarter. The company expects third-quarter adjusted earnings of 62 to 64 cents per share, below analysts’ expectations.
The sharp sell-off has intensified debate over the strength of the U.S. consumer, as rising fuel and other living costs appear to be forcing shoppers to become more selective with their spending.