Walmart shares drop 5% as US sales slowdown concerns

Shares of Walmart Inc. fell sharply this week, reaching an eight-month low on Wednesday, July 1, after a report raised concerns about slowing U.S. sales. The stock’s decline of over 5% that day marked its sixth consecutive trading session of losses, extending a correction that has seen the share price drop more than 19% from its all-time high in mid-May.

The sell-off was triggered by a report from research firm Cleveland Research, which indicated a deceleration in comparable store sales in the United States. The firm suggested Walmart has been lowering prices to clear excess inventory, a move that could pressure profit margins and potentially cause the retailer to miss its second-quarter revenue guidance. The report noted that July’s performance would be particularly critical for assessing the trend.

This downturn comes despite Walmart reporting solid financial results for its first quarter, which ended in May. The company posted earnings per share of $0.66, meeting analyst expectations, while revenue of $177.75 billion exceeded forecasts and represented a 7.4% increase from the same period last year. At that time, management reaffirmed its full-year fiscal 2027 earnings guidance.