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Walmart Reports Slower Sales Growth as Gas Prices Rise
Walmart said higher gasoline prices are prompting U.S. consumers to reduce spending. The retailer lowered its sales growth forecast for the current quarter.
May 21, 11:42 AM·1m read1 source
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U.S. consumers to reduce spending in other areas. 3% rate recorded in the prior quarter.
8% increase from the same period a year earlier. 8 billion. The company attributed part of the recent resilience in consumer spending to higher tax refunds tied to tax cuts in President Donald Trump's One Big Beautiful Bill Act. Finance chief John David Rainey said those refunds had offset some pressure from rising fuel costs.
Rainey said consumers are expected to feel more pressure from higher fuel prices now that tax refunds have largely ended. He added that the retailer is monitoring gas prices closely and expects them to stay elevated for the coming months. 56, up from $3 at the start of the conflict in the Middle East.
Rainey said continued closure of the Strait of Hormuz could lead to shortages of fertilizer, nitrogen, and phosphates, potentially forcing higher food prices. Walmart shares fell 7% on Thursday following the guidance.
