Walmart Misses Sales Estimates As Fuel Costs Put US Shoppers Under Pressure

Walmart missed quarterly comparable-sales estimates for the first time in at least five years, highlighting the pressure rising fuel costs are putting on consumer spending, according to a Reuters report. The world’s largest retailer’s second-quarter US same-store sales rose 2.6%, below the 3.8% increase expected by analysts, according to LSEG data cited by the news agency.

Average spending per transaction also grew just 1.1%, compared with a 3.1% increase a year earlier. Walmart said it cut prices on 11,000 items during the quarter, but noted that the impact of those price reductions may not be reflected in sales until the next quarter.

Fuel Costs Add To Consumer Pressure

Walmart expects fuel prices to remain steady and said it could face around $2 billion in additional fuel-related costs above its original guidance. CFO John David Rainey said higher fuel prices could have a psychological impact on consumers, leading them to make spending trade-offs.

The retailer is using savings from tariff refunds to support lower prices, particularly across groceries and general merchandise. Walmart said it had received nearly all of the $2.9 billion in tariff refunds it had expected and was reinvesting those savings in prices.

However, the benefits of those lower prices may take time to appear in sales. Rainey said the company expects its price investments to start showing results in the next quarter.

Walmart Lifts Annual Forecast Amid Growth Concerns

Walmart raised its fiscal 2027 net sales growth forecast to 4%–5%, from its earlier target of 3.5%–4.5%. It also increased its annual adjusted earnings-per-share forecast to $2.80–$2.87, from $2.75–$2.85.

But its third-quarter outlook was weaker. Walmart expects adjusted earnings per share of 62–64 cents, below the 68-cent analyst estimate. It also forecast net sales growth of 3%–3.75% for the quarter.

Store traffic growth slowed to 1.5% from 3% in the previous quarter. E-commerce sales still rose 24%, while Walmart Connect, its US advertising business, grew 43%.

The weaker store traffic and comparable-sales performance raise questions about whether Walmart can maintain the strong momentum it has enjoyed as consumers shifted towards lower-priced options.