Walmart sticks to annual targets as fuel shock hurts American spending
The retailer said consumers are under pressure, but it kept full-year guidance and reported 4.1% comparable U.S. sales growth.
- Walmart released fiscal first-quarter earnings Thursday, issuing a cautious current-quarter forecast below Wall Street expectations as finance chief Jim Lee warned that tax-refund benefits are fading.
- Soaring gasoline prices—40% above year-ago levels—and consumer sentiment plummeting to record lows in May have created economic headwinds challenging shopper resilience since the Middle East conflict intensified.
- Analysts from LSEG had projected 66 cents earnings per share and $175 billion revenue, yet Walmart's second-quarter guidance of $182.8 billion to $184.59 billion in sales fell short of the $186.2 billion Wall Street expected.
- Target reported Wednesday that higher tax refunds fueled first-quarter growth, mirroring Walmart's experience; both retailers now face investor questions about whether high-income shoppers will sustain spending as gas prices remain elevated.
- Persistent inflation and years of sticky interest rates, compounded by the Middle East conflict, have created broader macroeconomic headwinds that Walmart's cautious guidance reflects across the retail sector.
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70 Articles
Retail signals portend trouble for US consumers
Major US retailers suggested shoppers are reining in spending as the Iran war raises prices on essential goods.Walmart on Thursday reported a worse-than-expected outlook, noting that its sales were driven by lower-price goods.The average number of gallons a customer buys at Walmart gas stations has fallen to 2022 levels, in an “indication of stress” amid soaring fuel prices, the company’s finance chief said.A Target executive echoed those fears,…
Walmart Q1 Earnings Call Highlights
Walmart (NASDAQ:WMT) executives said the retailer delivered stronger-than-expected first-quarter fiscal 2027 sales growth, driven by higher transactions, e-commerce momentum, marketplace gains and growth in advertising and membership revenue, while higher fuel costs weighed on operating income. CEO
Associated Press News
Walmart wins over broader swath of consumers, but global uncertainty clouds outlook for retailers
Walmart delivered another strong quarter of sales as the discounter’s speedy deliveries and low prices served as a magnet for shoppers across the income spectrum.
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