Walmart reports its slowest sales growth in six years

Walmart’s US same-store sales rose 2.6 percent in the second quarter, below the 3.8 percent forecast by LSEG analysts and the company’s slowest quarterly increase in six years.

The Bentonville, Arkansas-based retailer attributed the slowdown partly to higher petrol prices, while its earnings report also cited the effects of tariffs and tensions between the United States and Iran on consumer spending.

Fuel costs and inflation squeeze household budgets

Walmart said consumers were making spending trade-offs as petrol prices moved above $4 per gallon. The average US price reached $4.10 on Thursday, up from $4.07 a week earlier, compared with $2.98 when the United States and Israel first struck Iran.

The retailer expects $2bn in additional fuel-related costs beyond its original guidance. Separately, US consumer inflation rose 0.1 percent from the previous month and 3.4 percent from a year earlier, according to the Bureau of Labor Statistics. Fresh fruit prices rose 2.2 percent monthly, while butter increased 0.8 percent and fresh fish 1 percent.

Walmart sees weaker stores but stronger online sales

Overall quarterly revenue increased 3.4 percent, its slowest growth since the first quarter of fiscal 2023. Sales fell in Walmart’s US pharmacy business and dipped in other areas, while consumer spending at checkout rose 1.1 percent from the previous quarter—below the 3.1 percent increase recorded a year earlier.

Store foot traffic grew 1.5 percent during the quarter, down from 3 percent in the previous quarter. US e-commerce sales, however, climbed 24 percent. Walmart raised its forecast for net sales growth to 4–5 percent from 3.5–4.5 percent.

Price cuts and wider retail weakness

Walmart announced price cuts on 11,000 items, partly supported by $2.9bn in tariff refunds. The company said the price changes began in July, so their impact may be more visible in its next earnings report rather than immediately.

Retail sales in the United States fell 0.6 percent in July, the largest decline since May 2025, according to Commerce Department data. TJX reported quarterly sales growth of 1 percent, down from 6 percent previously, while Target reported sales of $26.5bn, up 5.3 percent from a year earlier, alongside a 3.6 percent increase in store traffic.

Walmart shares fell 9.6 percent after the earnings report. TJX shares declined 1.7 percent and Target shares fell 0.1 percent.