Walmart (WMT) Stock: $2.9 Billion Tariff Refund to Fund Price Cuts After Sales Miss
TLDR
- Walmart stock fell more than 9% after US comparable store sales rose just 2.6%, the slowest growth since early 2020
- The company received $2.9 billion in tariff refunds, the largest reported so far, which it will direct toward price cuts
- Higher gas prices are squeezing consumer spending, with CFO John David Rainey citing a “softer consumer environment”
- Net income came in at $6.4 billion for the quarter ending July 31, boosted by the tariff refund
- Walmart delivered 11,000 rollbacks in Q2, up from 7,200 in Q1, as it pushes to attract budget-conscious shoppers
Walmart (WMT) stock dropped more than 9% in early trading Thursday after the retail giant reported its slowest US store sales growth in six years. US comparable sales rose just 2.6% in the second quarter, down from 4.6% a year ago and 4.1% in Q1. That is the weakest reading since February through April of 2020.
Net income for the quarter ending July 31 came in at $6.4 billion. That was helped in large part by a $2.9 billion tariff refund, the largest yet reported by any company.
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