Story perspectives

Walmart Forecasts 4-5% Sales Slow as Gas Hits $4.56

5/22/2026

Summary

Walmart Warns

Walmart warned that U.S. petrol prices, now $4.56 (£3.40) per gallon up from $3, will slow its sales growth to 4%-5% between May and July.
Walmart reported first-quarter profit of $5.3 bn, an 18.8% increase, and sales of $177.8 bn, up 7.3% year over year.
Shares fell 7% after the outlook, with CFO John David Rainey warning that ending tax refunds and a Strait of Hormuz closure could lift food prices through fertilizer shortages.

Summary

Walmart Sales Surge

Walmart's e-commerce sales grew 26% in the first quarter.
Its worldwide advertising division increased 37% in the same period, adding revenue.
CFO John David Rainey said operating-income expectations are strongest in about fifteen years despite a $175 million fuel-cost headwind.
Walmart serves roughly 140 million U.S. shoppers each week, a figure analysts use to note that lower-income households spend four times more of their budgets on gasoline, amplifying the 28.4% price jump.

Summary

Walmart Fires Back

Walmart's official Twitter account posted “Go ahead. Get your 2 hour debate. #SoreLoser,” with a Reuters photo by Kamil Krzaczynski.
The tweet was released the same day Walmart issued a weaker-than-expected earnings outlook for fiscal 2027.
Analysts said the post was an atypical corporate use of X to confront market skepticism.
Investors seized the #SoreLoser hashtag, sparking a brief surge in online discussion about Walmart's guidance.

Summary

Walmart Faces Gloom

Consumer sentiment hit a record low in May, creating a bleak backdrop for Walmart’s earnings call.
Finance chief Jim Lee said higher tax refunds lifted Q1 consumer spending but the boost will fade later.
A shift toward higher-income shoppers may cushion the impact of rising gas prices on grocery sales, while Middle East conflict, soaring gasoline prices, sticky inflation, higher interest rates and a trade war frame the spending outlook.

History

Historical Context

The October 1973 OAPEC oil embargo, launched to punish U.S. support for Israel, caused U.S. gasoline lines and a 43% jump in pump prices from 38.5¢ (May 1973) to 55.1¢ (June 1974). President Richard Nixon responded with price controls and rationing. Today, Walmart warns that a $4.56-per-gallon fuel surge could curb sales, echoing the 1970s shock.

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Walmart Warns

Walmart warned that U.S. petrol prices, now $4.56 (£3.40) per gallon up from $3, will slow its sales growth to 4%-5% between May and July.
Walmart reported first-quarter profit of $5.3 bn, an 18.8% increase, and sales of $177.8 bn, up 7.3% year over year.
Shares fell 7% after the outlook, with CFO John David Rainey warning that ending tax refunds and a Strait of Hormuz closure could lift food prices through fertilizer shortages.

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