Walmart Inc. posted weak quarterly earnings and reported its slowest pace in U.S. comparable sales in six years. These sales fell short of expectations, a rare miss that is likely to stoke concern about the leading big-box retailer decelerating alongside a slow-growing US economy.
High gas prices and weaker pharmacy sales pushed growth to its slowest pace in six years. Specifically, fuel prices above $4 per gallon have impacted consumer behavior, driving spending trade-offs and slowing the company's growth.
These results offer a mixed picture of the American consumer. While Target and other major retailers reported strong sales this week, Walmart and other big U.S. retailers have warned that consumers are being cautious, even if personal balance sheets seem healthy.
Consequently, Walmart has offered a cautious outlook for the year. Although American consumers haven’t given up, they are feeling the pressure.