Full Breakdown
Walmart Reports Weakest U.S. Sales Growth in Six Years, Plans Price Cuts Using $2.9 B Tariff Refund
8/21/2026, 11:12:29 AM
Core Event: Q2 Earnings Reveal Slowed U.S. Comparable Sales
Walmart’s fiscal second-quarter results, released Thursday, showed U.S. comparable sales rising only 2.6 %—the smallest increase since 2020 and the slowest in six years. Global revenue grew 5.9 % to $187.9 billion, while e-commerce sales jumped 23 % worldwide. Net income was $6.4 billion for the three months ending July 31, but earnings per share missed guidance, sending the stock down roughly 9 % in pre-market trading.
Background & Context: Tariff Refunds and Consumer Pressure
A February Supreme Court ruling declared former President Donald Trump’s sweeping tariffs illegal, prompting U.S. Customs and Border Protection to begin refunding importers. Walmart is eligible for about $2.9 billion in refunds from tariffs paid in 2025-26 and has already received most of that amount. Higher gasoline prices—averaging $4.10 per gallon—and new federal drug-price caps have squeezed household budgets and contributed to the modest sales growth.
Data & Statistics
- Total revenue: $187.9 billion (up 5.9 % YoY)
- U.S. comparable sales: 2.6 % increase (smallest since 2020)
- Global e-commerce growth: 23 % YoY
- Net income: $6.4 billion for the quarter ending July 31
- Tariff refunds: $2.9 billion eligible; less than $100 million still pending
- Membership revenue: Walmart+ fees up 17 % with net adds at a two-quarter high
Official Statements & Responses
Chief Financial Officer John David Rainey said the company plans to channel the refunds into “lower prices for consumers,” with the impact expected in the third quarter. He noted that higher fuel costs are driving “psychological” consumer trade-offs, prompting Walmart to “lean heavily into lower prices.” CEO John Furner added that shoppers are “feeling some pressure,” and the retailer is “proud of our investments” in price cuts and customer-experience improvements.
Verbatim Quotes
- “But consumers are still spending, and real wage growth is keeping pace, and so they've been very resilient in this environment,” — John David Rainey, CFO
- “Customers are feeling some pressure, so we're proud of our investments,” — CEO John Furner
Why It Matters / Impact
Walmart’s modest U.S. sales growth is viewed as a bellwether for consumer spending. Using the $2.9 billion refund for price reductions could temper inflationary pressure on essential goods, especially groceries and beef, and may influence competitors’ pricing strategies. The company warned that rising fuel costs and drug-price caps will continue to pressure margins, suggesting lower prices may be offset by higher operating expenses.
Conflicting Reports & Gaps
- Walmart indicated most of the tariff refunds have been received, yet also stated that “less than $100 million” remains outstanding; the timing of the final disbursement is not disclosed.
- While Walmart plans to pass savings to shoppers, other retailers (e.g., Target) have not linked their refunds directly to price cuts, leaving the broader industry impact unclear.
What’s Next
Walmart has raised its full-year net-sales outlook to 4 %–5 % growth and expects adjusted earnings per share between $2.80 and $2.87. The price-cut program funded by the tariff refunds should be visible to consumers in the third quarter. Analysts will watch whether the lower-price strategy can sustain traffic as fuel prices remain above $4 per gallon.
