Walmart (NASDAQ:WMT) plans to use expected U.S. tariff refund payments to lower consumer prices starting in the third quarter, CFO John David Rainey said.
Rainey said the retailer was eligible for roughly $2.9 billion in tariff refunds and has received all but about $100 million of it, with the money funding price cuts in the third quarter.
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Walmart’s Sales Growth Slows
Despite the tariff refunds, Walmart’s U.S. sales growth has hit its weakest pace since 2020.
The retailer reported second-quarter sales of $187.9 billion, surpassing estimates, but issued third-quarter guidance below expectations. The company cited a 125-basis-point headwind from pharmacy deflation due to new fair price regulations.
Market Tensions and Economic Impact
Walmart’s economic environment is also influenced by broader market tensions. U.S. stocks fell on Thursday as geopolitical tensions escalated following President Donald Trump‘s announcement of “Operation Economic Fury” against Iran.
This move has heightened Middle East tensions and impacted market indices, including the Dow Jones and S&P 500.
Technical Analysis
WMT experienced one of its largest one-day moves in years, dropping 9.32% on Thursday. The stock’s market cap has decreased by about $85.01 billion over approximately three sessions.
Currently, WMT trades 9.03% below its 50-day moving average of $113.93 and 12.54% below its 200-day moving average of $118.51, indicating a bearish trend.
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