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Walmart Issues Cautious Outlook as Fuel Costs Weigh on Consumer Spending

Walmart issued disappointing forward guidance Thursday while reporting fiscal first-quarter results. The retailer raised concerns about consumer resilience amid elevated fuel prices. It expects adjusted earnings per share between 72 cents and 74 cents in the current quarter, below analyst expectations of 75 cents. Net sales are projected to grow 4 to 5 percent. Finance chief John David Rainey attributed near-term pressure to the fading stimulus effect of tax refunds, which masked fuel-related strain on shoppers in Q1. He warned that consumer pain will likely intensify in the second quarter as refund payments diminish. Walmart absorbed a $175 million fuel headwind in Q1 while maintaining guidance, with Rainey projecting larger headwinds ahead if energy costs persist at current levels.