The world's largest bricks-and-mortar retailer has had a tough summer. Its fiscal second-quarter earnings, slated for Thursday morning, are a chance to turn that around.

Shares of Walmart are down roughly 15% since its previous earnings report, in mid-May, a rough patch following years of strong stock performance as the company proved to be one of the most consistent performers in retail and a powerhouse in the age of e-commerce.

Consensus calls for Walmart to earn 74 cents a share, the high end of the company's guidance and a 9% increase from the year-ago period, on revenue of $186.6 billion.

Walmart stock has struggled in recent months as investors fret about how much lower-income consumers will cut spending to combat inflation stoked by the Iran War. Although the company is getting billions in tariff refunds, that's largely going toward price cuts, and competition in its key grocery business will likely be stiff. All of that could weigh on the company's comparable sales growth.

That said, the recent share declines and pessimism about American shoppers mean that expectations are more muted for the quarter than they have been for a while. Moreover, Wall Street is still largely optimistic about the company's ability to stay at the top of the retail game, even as its valuation remains elevated despite the recent pullback. All but seven of the 45 analysts tracked by FactSet are bullish on Walmart, with an average price target of nearly $140.

Tariff refunds will likely complicate the margin picture for many retailers this earnings season, but if Walmart is able to deliver better-than-expected results or comparable sales against lackluster expectations, that could help the shares move past their summer doldrums. An optimistic tone from management about consumer resilience ahead of the crucial back-to-school and holiday shopping seasons could likewise do the trick.

Absent those, the stock may struggle to find its footing.