Walmart warns high fuel prices hurt shoppers

Walmart shares dropped about 8% on Thursday after the retail giant issued a weaker-than-expected earnings outlook, highlighting growing pressure on consumers from high fuel prices and fading tax refunds.

The company expects fiscal 2027 adjusted earnings per share between $2.75 and $2.85, below Wall Street expectations of $2.91. 

For the current quarter, Walmart forecast earnings of 72 to 74 cents per share, also missing estimates. However, the retailer still expects annual net sales growth of 3.5% to 4.5%.

Despite the cautious guidance, Walmart delivered strong first-quarter results. Revenue rose 7% to $177.8 billion, topping estimates of $174.98 billion, while net income increased to $5.33 billion from $4.49 billion a year earlier. 

Same-store sales climbed 4.1%, helped by strong e-commerce demand and higher-income shoppers seeking value.

Finance chief John David Rainey said lower-income consumers are becoming more budget-conscious as fuel prices rise, while wealthier shoppers continue spending confidently.