Cleveland Research warned that U.S. comparable sales appear to have "slowed to some degree."
- Walmart appears to be reducing inventory through price adjustments.
- The company is using tariff refunds to offset lower prices, Cleveland Research said.
- 37 out of 43 analysts rate the stock ‘buy,’ five say ‘hold’ and one ‘sell,’ as per Koyfin data.
Walmart (WMT) share price dropped 5% on Wednesday to its lowest level in nearly eight months after U.S.-based research firm Cleveland Research flagged slowing comparable sales, posing a potential risk to consensus estimates.
According to Cleveland Research, Walmart's U.S. comparable sales "appear to have slowed to some degree," a trend that could threaten consensus estimates "depending on how July plays out."
“The tone on the outlook sounds slightly less positive based on macro/consumer concerns,” Cleveland Research wrote in a note to clients.
Walmart (WMT) shares were on track to post a sixth straight day of losses on Wednesday, putting the stock on pace for its biggest one-day decline since May.
WMT Sales Are Faltering
The report indicates that Walmart has been proactively managing its inventory through targeted price reductions, using tariff refunds as a hedge to maintain profitability despite lower prices. This shift toward a more cautious consumer outlook triggered immediate market volatility, prompting both retail and institutional investors to adopt defensive trading strategies.
Walmart’s US comparable sales (ex fuel) growth for Q1FY27 dropped to 4.1% from 4.5% in the same quarter last year, mirroring a trend of easing or stagnating growth over the past few quarters.
WMT Stock: Retail View
Retail sentiment on Stocktwits was ‘neutral’ with ‘normal’ message volumes. Retail chatter on the stock has jumped about 250% over the past week.
The State Street S&P 500 ETF (SPY), Invesco QQQ (QQQ) and Vanguard S&P 500 ETF (VOO) which include Walmart among top holdings have gained between 8% to 17% year-to-date.
WMT Stock has jumped 3.1% year-to-date.
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