Walmart reports slowest U.S. comparable sales growth in six years

Walmart reported second-quarter results that showed a significant slowdown in U.S. comparable sales, which grew by only 2.6%. This figure represents the company’s weakest comparable-sales growth in over six years and fell below analyst expectations of approximately 3.7% to 3.8%. The slowdown has raised concerns regarding the strength of American consumer spending as household expenses and fuel costs remain elevated.

Despite the sluggish comparable sales, other segments of the business showed robust growth. Walmart’s U.S. e-commerce business increased by 24%, advertising revenue rose by 38%, and membership revenue grew by 17%. Total revenue for the quarter reached approximately $187.9 billion, a 5.9% year-over-year increase, while adjusted earnings of $0.81 per share exceeded Wall Street forecasts of $0.74 per share.

Market reaction to the report was negative, with shares falling roughly 9% following the announcement. Analysts have noted a valuation gap between Walmart and competitors like Target, suggesting that while the company remains a strong business, its high stock premium may pose risks to investors if valuations undergo a correction.