Walmart misses sales estimates for first time in 5 years, shares drop 8%
Why it matters: Slower traffic and weaker basket growth suggest higher fuel costs are squeezing shoppers ahead of holiday spending.
Walmart missed quarterly comparable sales estimates for the first time in at least five years, a rare setback for the biggest US retailer and a warning sign for consumer demand. US same-store sales rose 2.6% in the second quarter, below the 3.8% analysts expected, while average spending per transaction increased 1.1%. Shares fell 8% in early trading. Walmart slightly raised its full-year sales and profit outlook, but said steady fuel prices would still add about $2 billion in costs above its original guidance. The company also said store traffic growth slowed to 1.5% from 3% in the prior quarter, even as it cut prices on 11,000 items and expanded faster delivery.