Walmart shares slumped over 6% in pre-market trading after reporting its weakest US sales growth in more than six years. US same-store sales rose just 2.6% in the quarter ending July, the slowest pace since late 2019, with growth coming entirely from ecommerce as brick-and-mortar sales declined by 2.5%.

The retailer plans to deploy most of its nearly $3bn US tariff refund to freeze or lower prices on merchandise and groceries through year-end. The emergency tariffs, enacted by President Donald Trump and struck down by the Supreme Court in February, had previously contributed to Walmart's valuation exceeding $1tn earlier this year.

CEO John Furner emphasized heavy investment in price cuts as necessary for customers and long-term market share gains. Revenue rose 5.9% to $187.9bn, while operating profit jumped 28.8% to $9.4bn. Ecommerce sales grew 23% year-on-year, and advertising revenue increased 38%.

The company raised its financial outlook, forecasting 4-5% net sales growth and 7-8.5% adjusted operating income growth. CFO John David Rainey noted that prioritized tariff refunds support price investments amid financial strain on lower-income households facing fuel and food inflation.