Walmart blames high gas prices in weak outlook, shares fall about 7%
financeMay 21, 202656183
Walmart issued a worse-than-expected outlook, blaming elevated gasoline costs for weakening shopper demand and sending its shares down about 7 percent. CFO John David Rainey said higher tax returns helped offset some of the gasoline squeeze in the first quarter. Gasoline prices have risen more than 51 percent since the Iran war, and Federal Reserve Bank of Richmond President Thomas Barkin warned prices could take months to fall even after the Strait of Hormuz reopens. That matters because sustained higher fuel costs squeeze household budgets, lower discretionary spending at big-box retailers like Walmart, and can pressure the broader retail sector and market sentiment.
