At Walmart, billions in tariff refunds soften the blow from slower sales growth - NBC News
Walmart reported a 9% drop in stock price following disappointing same-store sales growth of 2.6%. Despite receiving $3 billion in tariff refunds, the company faces headwinds from rising fuel costs and shifting consumer spending habits.
Why it matters
As the largest private employer in the U.S., Walmart's performance serves as a critical bellwether for the health of the American consumer and the broader economy.
Walmart says it has received nearly $3 billion in tariff refunds — and used some of that windfall to cut prices for consumers strained by inflation. The refunds helped boost Walmart’s profit, according to the company’s quarterly earnings report Thursday. “Customers tell us they’re still feeling some pressure,” Walmart CEO John Furner said. “Having the best prices across a basket of goods helps us continue to build trust with our customers and members by helping them save money at a time when many households are carefully managing their budgets.” But the rosy picture on the income front was marred by slower U.S. same-store sales growth. Coming in at just 2.6%, it was the lowest Walmart has reported in years. Wall Street, which is accustomed to robust growth from Walmart, reacted swiftly to the lukewarm sales numbers, and the company’s stock plunged 9% Thursday.
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