Business

At Walmart, billions in tariff refunds soften the blow from slower sales growth

Walmart says it has received nearly $3 billion in tariff refunds — and used some of that windfall to cut prices for consumers strained by inflation. The refunds helped boost Walmart’s profit, according to the company’s quarterly earnings report Thursday. “Customers tell us they’re still…

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Walmart says it has received nearly $3 billion in tariff refunds — and used some of that windfall to cut prices for consumers strained by inflation.

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The refunds helped boost Walmart’s profit, according to the company’s quarterly earnings report Thursday.

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“Customers tell us they’re still feeling some pressure,” said Walmart CEO John Furner. “Having the best prices across a basket of goods helps us continue to build trust with our customers and members by helping them save money at a time when many households are carefully managing their budgets.”

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But the rosy picture on the income front was marred by slower U.S. same-store sales growth. Coming in at just 2.6%, it was the lowest Walmart has reported in years.

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Wall Street, which is accustomed to robust growth from Walmart, reacted swiftly to the lukewarm sales numbers, and the company’s stock plunged 9% Thursday morning. Shares of Walmart are down over 23% from the company’s recent high in May, and the company fell out of the $1 trillion club.

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Walmart attributed the disappointing sales growth in part to new federal drug pricing rules which slashed the price of several expensive medications for Medicare enrollees.

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The company is also expecting more than…

Original source: https://www.nbcnews.com/business

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