Walmart Cuts Prices on 11,000 Items With $2.9 Billion Tariff Refund as Sales Growth Slows
Updated
Updated · WSFA · Aug 20
Walmart Cuts Prices on 11,000 Items With $2.9 Billion Tariff Refund as Sales Growth Slows
3 articles · Updated · WSFA · Aug 20
Summary
11,000 items will get temporary price cuts at Walmart, funded by a $2.9 billion U.S. tariff refund as the retailer leans harder into groceries and general merchandise.
U.S. comparable sales rose 2.6% in the quarter—the slowest growth in six years—and missed Wall Street expectations, underscoring pressure on shoppers as gasoline climbed to $4.10 a gallon.
Profit still beat forecasts: net income reached $6.37 billion, or 80 cents a share, on $187.94 billion in sales, while U.S. e-commerce jumped 24% to 23% of the domestic business.
Shares fell more than 8% after Walmart projected full-year earnings of $2.80 to $2.87 a share and sales of $741.7 billion to $748.8 billion, both below analyst expectations.
Walmart, a key gauge of consumer demand, said it can feel shoppers pulling back when gas tops $4, a warning that gained weight after weak July retail sales and worsening consumer sentiment.