Why Walmart Plunged Today

Walmart’s shares dropped 4.5% on Wednesday (as of 1:05 p.m. EDT) after a sell-side analyst warned that same-store sales are slowing. The decline extends a broader pullback, with the stock down nearly 20% from its May highs. Cleveland Research said its channel checks indicate Walmart may be lowering prices to clear excess inventory, while possible tariff refunds could partially offset the pressure. The analyst also questioned whether Walmart can beat sales guidance for the quarter ending in late July. The report comes as the U.S. Supreme Court struck down most tariffs imposed in early 2025, with refund applications opened April 20 by Customs and Border Protection. However, higher replacement tariffs could be issued starting July 24, and the period also faces higher oil costs tied to the Iran war. Walmart still trades at about 38 times earnings.