Shares of Walmart fell as much as 10% Thursday after it reported quarterly sales growth below analysts' expectations, an unusual shortfall for the company.
Reuters Correspondent Nicholas Brown reports on the retailer.
“Walmart's sales grew only 2.6% which is the the slowest pace of growth in about six years for them. It's the first time that they've met failed to meet analyst estimates for their sales in about five years. So, it's exceedingly rare for Walmart to miss.”
The company said shoppers were likely being squeezed by high gasoline prices, raising concerns that pressure on U.S. consumers is growing.
The retailer did raise its annual sales and profit forecasts and said aggressive price cuts would boost demand later this year, but investors were unconvinced.
Walmart shares though have more than doubled since the start of 2024, spurring debate about whether it is now overvalued.
Some analysts and investors Reuters spoke to remain bullish on the stock.
Bright spots in the quarter included its advertising business, whose sales jumped 43% year-over-year, while membership revenue grew 17%.
Posted by: AAngeles/NET25 News
