Walmart reported its smallest quarterly sales gain in over six years, with U.S. comparable sales rising just 2.6% — below analyst expectations of 3.8%. The slowdown was partly attributed to new pharmacy-pricing regulations that impacted results by 0.8 percentage points.
The retailer's stock dropped over 6% to $107 in premarket trading following the announcement. This deceleration reflects cautious consumer spending habits amid higher gas prices and economic uncertainty.
Notably, growth is increasingly driven by non-traditional channels rather than Walmart's core big-box stores. E-commerce, membership programs, and advertising sales are becoming primary revenue drivers for the Bentonville, Ark.-based company.
While Walmart still generates the majority of its sales and profits from sprawling supercenters, the shift toward digital and membership-based revenue streams marks a significant transition in the company's business model.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing