Three Cracks in Consumer Spending Reveal Why Walmart Had Its Worst Day Since 2022 Despite an Earnings Beat

Walmart reported revenue of $187.9 billion, slightly above the $186.8 billion expected, with growth of 5.94% year over year and adjusted EPS of $0.81 versus $0.7413 forecast. Despite beating earnings expectations, the stock posted its worst single-session performance since 2022, falling 9.15% on Aug. 20 from a close of $114.03 on Aug. 19 to $103.59, then ending the week at $103.70 on Aug. 21. Analysts pointed to three spending “cracks”: slowing Walmart U.S. comparable sales (2.6% vs 4.8% a year ago), weaker-than-expected third-quarter guidance, and pressure from higher fuel prices, with CFO John David Rainey citing consumer tradeoffs as regular gas averaged $4.05 per gallon.