Walmart Inc. operates retail and wholesale stores, membership clubs, ecommerce websites, and mobile applications worldwide. It reports through three segments: Walmart U.S., Walmart International, and Sam's Club U.S. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Founded in 1945, it is based in Bentonville, Arkansas.
Kroger Cuts Full-Year Identical Sales Guidance as Walmart Shares Outperform
Kroger cut its full-year identical sales growth guidance to a range of 0.2% to 0.8%, down from an earlier 1% to 2%, after second-quarter identical sales growth slowed to 0.2% from 3.4% a year earlier and missed analyst estimates of 0.9%. The grocery firm's operating margin stayed flat year over year at 2.8%, though its high-margin marketing business KPM grew profit by 24% annually. Walmart, by contrast, grew comparable sales at 2.6% in its second quarter, its slowest pace in nearly five years and below analyst estimates of 3.7%, while management flagged an expected $10 billion cost headwind from higher fuel prices in fiscal year 2027. Walmart's advertising revenue rose 38%, with Walmart Connect up 43%. Walmart trades at a forward P/E of 37 versus Kroger's 11.96, and short interest stands at 1.9% of Walmart's float against 4.69% for Kroger.
Two U.S. Senators Ask FTC to Investigate Amazon and Walmart Over Shopping-Assistant AI
Two U.S. senators have asked the Federal Trade Commission to investigate shopping-assistant AI from Amazon.com and Walmart. In a letter to the FTC, Senators Tammy Baldwin and Rick Scott said Amazon's Alexa for Shopping and Walmart's Sparky may exclude American-made products from what they display or fail to detect false labeling, undermining U.S. manufacturing and misleading consumers. The senators cited research from a think tank led by former FTC Chair Lina Khan, which found that these AIs provide information about products made in China and other countries while suppressing information about American-made goods. The letter cites that research and notes that when Alexa was asked why there was no made-in-USA filter, it replied that doing so would "take away considerable sales from our largest seller base" and referred to overseas manufacturers. An Amazon spokesperson said the claim that the company deliberately withholds country-of-origin information is fundamentally wrong, and explained that Alexa for Shopping is a service that is continuously improving and that, to prioritize accuracy, it currently directs customers who ask about country of origin to the product detail page. The FTC declined to comment, and Walmart did not immediately respond to a request for comment from Reuters.
Amazon Plans Project Mercury Same-Day Delivery Expansion to 1,000 Sites by 2031
Amazon is reportedly preparing a major expansion of its same-day delivery network, targeting more than 1,000 dedicated facilities by 2031, up from roughly 85 today. The initiative, known internally as Project Mercury, would place dedicated same-day facilities within a 10-mile straight-line radius of 80% of U.S. Prime subscribers by 2031, according to Business Insider, compared with many current same-day sites positioned roughly a 90-minute drive from customers. Amazon's three-year operating plan allocates $6.8 billion toward U.S. same-day capacity during 2026 and 2027, and internal analysis reportedly estimates Project Mercury could generate $7.1 billion in economic value over a decade and become cash-flow positive by 2030. An Amazon spokesperson said internal forecasts are preliminary, subject to significant revision, and should not be treated as finalized plans, while noting the company is focused on delivering faster for customers. The expansion could strengthen Amazon's speed advantage against Walmart, DoorDash and Instacart, but the biggest risk is overbuilding capacity before order density justifies the investment.
Walmart Marketplace Growth Tops 50% in First Two Quarters
Walmart said its Marketplace business grew more than 50% in each of its first two quarters, driven by multi-year investments in assortment, pricing, delivery speed, fulfillment and product discovery rather than any single operational change. Manish Joneja, Walmart's senior vice president and global head of Marketplace and Fulfillment Services, told a Piper Sandler discussion that the company is using its 4,500 U.S. stores as fulfillment nodes, allowing third-party Marketplace inventory to be forward-deployed to store backrooms and enabling pickup or delivery in as little as 30 minutes in some areas. Joneja said 95% of the U.S. population lives within a three-hour delivery range of a Walmart store, while 60% is within a sub-30-minute range, and that Walmart's online pickup and delivery business grew 43% in the most recent quarter. Walmart Fulfillment Services, which accounted for 50% of Marketplace sales, delivers conversion rates more than 50% higher and costs 15% lower for participating sellers, and combining WFS with advertising has in some cases produced five times gross merchandise value growth. Walmart is also extending the Marketplace model to Canada, Mexico and Chile, opening walmart.com to Canadian and Mexican shoppers seeking U.S. assortment and letting sellers reach multiple markets through a single entry point.
Walmart and SCAN Health Plan to Offer Co-Branded Medicare Advantage Plans
Walmart and SCAN Health Plan announced a partnership on Wednesday to offer co-branded Medicare Advantage plans in two states, targeting a pool of more than two million Medicare enrollees. The plans, pending regulatory approval, may include pharmacy, vision, food, and over-the-counter benefits, with open enrollment for Medicare Advantage beginning Oct. 15. A central feature of the partnership is Walmart's Everyday Health Signals platform, an AI tool designed to provide personalized nutrition and wellness guidance based on members' shopping preferences and self-reported wellness goals. SCAN Group is a nonprofit whose health plan serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington, with about half a million members and patients across all of its affiliated entities. The Walmart deal follows a similar move by SCAN with Costco Wholesale, which covers two states for Medicare Advantage products and a third for a Medicare supplement plan, with a combined pool of around five million Medicare enrollees. The two companies did not disclose the financial terms of Wednesday's deal.
Walmart is expected to post earnings of $0.63 per share for the current quarter, a change of +1.6% from the year-ago quarter, while the Zacks Consensus Estimate has moved -6.2% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $2.87 points to a change of +8.7% from the prior year and has changed -0.4% over the last 30 days, and for the next fiscal year the consensus estimate of $3.22 indicates a change of +12.3% and has changed -1.2% over the past month. On revenue, the consensus sales estimate of $186.47 billion for the current quarter points to a year-over-year change of +3.9%, while the $750.78 billion and $782.89 billion estimates for the current and next fiscal years indicate changes of +5.3% and +4.3%, respectively. Walmart reported revenues of $187.94 billion in the last reported quarter, up +5.9% year over year, with EPS of $0.81 versus $0.68 a year ago, beating the Zacks Consensus Estimate of $186.26 billion by +0.9% on revenue and posting an EPS surprise of +10.96%. Based on the size of the recent consensus estimate change and three other earnings-estimate factors, Walmart is rated Zacks Rank #3 (Hold), and it is graded D on the Zacks Value Style Score, indicating it trades at a premium to its peers.
India Amends Law to Allow Banks to Charge UPI Fees on Transactions Above 2,000 Rupees
The Indian government announced an amendment to its payments system law on Monday, September 14, barring banks from charging fees on UPI transactions of up to 2,000 rupees, or roughly 700 baht. The revised rules open the way for banks to charge fees on payment transactions above 2,000 rupees. The new criteria amend an earlier provision that had prohibited fees on all UPI transactions. However, the Indian government has not yet concluded whether it will begin collecting fees, nor how they would be calculated or at what rate they would be charged. Indian government officials have said that if fees are actually introduced, merchants would have to bear them rather than passing the burden on to consumers. Jefferies estimated in August that merchant fees on UPI transactions above 2,000 rupees would generate annual revenue of 50 billion to 100 billion rupees for the payments industry. The UPI system is operated by the National Payments Corporation of India, or NPCI, and data from the International Monetary Fund's 2025 report indicates that UPI is the world's highest-volume instant payment system for retail customers. In August, the system processed 24.51 billion transactions worth 29.82 trillion rupees, and Google Pay and PhonePe, which is partly owned by Walmart, together accounted for about 75% of all UPI transaction volume that month. Debit card payments on India's RuPay network will remain free to use as before.
Walmart Q2 Earnings Beat Estimates, Raises Fiscal 2027 Outlook
Walmart Inc. reported a fiscal second-quarter earnings beat and raised its full-year outlook, with revenues rising 5.9% year over year to $187.9 billion and adjusted earnings up 19.1% to 81 cents per share. Constant-currency revenues advanced 5.1%, adjusted operating income rose 17.4% at constant currency to $9.25 billion, and the gross profit rate improved 96 basis points to 25.4%. Global e-commerce sales rose 23%, global advertising increased 38% and membership fee revenues advanced 17%. Walmart raised its fiscal 2027 constant-currency net sales growth forecast to 4%-5% from 3.5%-4.5%, lifted adjusted operating income growth guidance to 7%-8.5% from 6%-8%, and raised adjusted EPS guidance to $2.80-$2.87 from $2.75-$2.85. For the third quarter, the company expects constant-currency net sales growth of 3%-3.75%, adjusted operating income growth of only 2%-4%, and adjusted EPS of 62-64 cents, while management flagged more than $2 billion of incremental fuel-related costs in fiscal 2027 and about 20 basis points of operating income drag from Vibe acquisition and integration costs.
Walmart Fast Delivery Grows 48% as Sub-30-Minute Service Hits 38 U.S. Markets
Walmart is expanding its delivery network to deepen its omnichannel model, reporting that U.S. e-commerce sales rose 24% in the second quarter of fiscal 2027 while store-fulfilled delivery sales grew approximately 43%. Expedited deliveries completed in under three hours accounted for roughly 37% of store-fulfilled orders, average weekly customers increased more than 20%, fast delivery in the United States rose 48% during the quarter, and sub-30-minute delivery expanded to 38 U.S. markets. Stores serve as last-mile fulfillment nodes for 80% of e-commerce orders and 100% of fast deliveries, and Walmart said customers using fast delivery shop more frequently, deepen their engagement and are more likely to become Walmart+ members. The delivery offering is also extending into additional food occasions through a recent collaboration with Dunkin', set to launch first via 150 in-store tenant locations, with plans to expand to the majority of Dunkin's 10,000 locations outside Walmart stores nationwide. Walmart, which competes with Costco Wholesale Corporation and Target Corporation, has seen its shares gain 3.3% over the past year compared with the industry's 2.2% growth, while the Zacks Consensus Estimate for its current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Kroger CEO Foran targets cost cuts and store execution as rivals loom
Kroger CEO Gregory Foran told the supermarket chain's second-quarter earnings call that the company must be relentless on cost, with sourcing and savings coming in ahead of plan this quarter, and that every dollar taken out can be reinvested in areas customers will see. Foran, who has spent his first year in the job visiting Kroger locations, said opportunity remains inside the stores through better in-stocks, merchandising, standards and shrink management, and noted on-shelf availability reached an all-time high while pickup perfect orders were the best ever. Kroger has also expanded its loyalty program, rebranding Fuel Points as simply Points so customers can apply savings at the pump or directly to their grocery bill in-store or online, and has leaned on its Smart Way opening price point brand with more items and broader store coverage. The push comes as Kroger, with a market capitalization of $35.83 billion, lacks the buying power of Amazon at $2.76 trillion and Walmart at $852.7 billion, and unlike those rivals it must make money from selling groceries rather than using them as a loss leader. Amazon CEO Andy Jassy said the company did over $100 billion in gross sales in its grocery business on everyday essentials last year alone excluding Whole Foods Market and Amazon Fresh, while Kroger posted $34.6 billion in total sales for the second quarter, and Walmart U.S. Chief Merchant Julie Barber said in July that the chain is making even more investments in price with thousands of Rollbacks across beef, fresh produce and beverages. GlobalData Managing Director Neil Saunders told RetailWire that Kroger has enormous reach and powerful economies of scale but has failed to capitalize on them, becoming a bland, middle-market grocer that does not win on price, experience, private label or e-commerce the way Walmart does.
Walmart Partners With Papa John's to Expand Restaurant Delivery
Walmart Inc. is expanding its restaurant-delivery business through a partnership with Papa John's that will let customers in select U.S. markets order pizzas, sides and desserts through Walmart's app and website. The service is expected to launch this fall before expanding to thousands of participating Papa John's locations nationwide, with customers able to order restaurant food separately or alongside Walmart groceries and household products, and Walmart's delivery network handling fulfillment. The move builds on Walmart's broader push into fast delivery: U.S. e-commerce sales rose 24% in its latest quarter, fast-delivery services for groceries and general merchandise grew 48%, and 30-minute-or-less delivery was available in 38 U.S. markets. The partnership could strengthen Walmart's position as a broader consumer-delivery platform, since roughly 80% of its e-commerce orders are already fulfilled from stores, and it expands Walmart's restaurant offering beyond earlier partnerships as an alternative to dedicated platforms such as DoorDash and Uber Eats. Still, the deal carries risk: restaurant delivery could add complexity and relatively low-margin volume, and Walmart's latest results showed U.S. comparable sales growth of only 2.6%, its weakest in more than six years, even as e-commerce grew 24%.
Cramer Calls Diesel a 25% Surtax as Walmart Flags $2 Billion Fuel Cost Hit
Jim Cramer said on CNBC's Squawk on the Street that rising diesel prices amount to a 25% surtax on everything Americans buy, one Congress never voted on. Walmart CFO John David Rainey told analysts on the August 20 call that the company now expects more than $2 billion of incremental fuel-related costs this year above and beyond its original guidance assumptions, and warned of a psychological impact once fuel prices rise above $4. McDonald's CFO Ian Borden cited continued inflationary pressures on food, paper and labor, and said the company pushed its 50,000-restaurant target from 2027 to 2028 as development costs climbed. McDonald's is down 15.58% year to date, Walmart is off 6.43% in the past month, and the XLY consumer discretionary ETF is down 6.11% in the past month, while Target is up 63.63% year to date on a Q2 that included a $994 million pretax IEEPA tariff refund contributing $1.65 to EPS. Cramer conceded the consumer has a job and wages are running slightly ahead of inflation, but treats that cushion as temporary, and the University of Michigan index sat at 55.2 in July, still below the 60 line flagged as recessionary.
Kroger loses $12 billion in CPG spending to Amazon, Walmart and Costco
Kroger has lost more than $12 billion in consumer packaged goods spending to Amazon, Walmart and Costco over the past year, according to a recent Numerator report. Within that total, CPG spending at Kroger and Ralphs stores declined by $715 million and $516 million respectively, as customers made 9 million and 5.5 million fewer trips than a year earlier, producing direct losses of more than $1 billion for the retailer. Lower-income shoppers pulled back their CPG spending by 5.2% year over year and made 30 million fewer trips, a shift the report describes as creating a $1 billion spending gap for Kroger, even as the chain added more than 1 million high-income households and lost 700,000 lower-income ones. On Kroger's September 11 earnings call, CEO Greg Foran said customers remain under pressure from reduced SNAP benefits, higher fuel prices and softer consumer confidence, and CFO David Kennerley said sales were softer than expected, with identical sales excluding fuel up just 0.2% in the second quarter of 2026. Kroger cut its full-year 2026 outlook for identical sales excluding fuel to growth of 0.2% to 0.8%, down from a previous expectation of 1% to 2%, while leaning into private label, including Private Selection, whose sales rose more than 14% in the quarter, and expanding its low-price Smart Way brand.
Mama's Creations Posts 55% Revenue Jump in Fiscal 2027 Second Quarter
Mama's Creations reported second quarter fiscal 2027 results on September 3, with revenue rising 55% to $54.6 million, net income more than doubling to $2.6 million, and adjusted EBITDA climbing 68.9% to $5.5 million. Distribution is expanding: October brings the company's first placement inside banner Kroger, with over 100 stores in the Louisville division stocking four items, while Costco has confirmed it for a second-half multi-vendor mailer across all eight national regions, Walmart shelf space has grown past 2,300 stores, and Sam's Club is adding 300 clubs for a new panko chicken product this quarter. Gross margin ticked up to 24.0% from 23.6% in the first quarter, operating expenses fell 160 basis points to 18.5% of revenue, and a July stock offering brought in $108.6 million, pushing cash to $138.6 million against just $4.8 million of total debt as of July 31. CEO Adam Michaels flagged the challenge that chicken bottom percentages are not growing as fast as overall volume, since those dark meat cuts carry higher margins than the portion chicken products driving the fastest sales gains, and the Bay Shore facility acquired last year is still working toward the company's corporate average margins. Hedge fund ownership rose from 17 funds to 30 in the most recent quarter, 7.30% of the float is sold short, and the stock trades at 86.56 times forward earnings as of September 11.
Greystone Logistics Loses iGPS, Cutting $30 Million in Annual Revenue
Greystone Logistics Inc lost its largest customer, iGPS, which ended an 11-year relationship in October and accounted for roughly 1.2 million pallets per year and about $30 million in annual revenue. Revenue for the fiscal year ending May 31 declined by approximately $30 million year-over-year, and the company laid off about 140 employees in December to cut costs. CEO Warren Kruger said Greystone will not be fully back on board until calendar year 2027, and the company has limited capital expenditures to maintenance only while subleasing idle equipment in Palmyra, Missouri. Greystone entered interest-only payment status for 2026 with IBC Bank, and its $50 million Walmart relationship over the last 5-6 years is currently behind schedule. New business efforts include a keg pallet for Yuengling expected to sell in the fall, a double-decker pallet for the concrete industry, plastic reprocessing that generates processing fees of $4,000 to $5,000 per day per machine, and fire-retardant pallets that passed initial fire tests and are being pursued for a potential Costco supply deal requiring a UL rating.
Haleon Wins Prime Shelf Space at Walmart and Target With Lower Prices
Haleon has negotiated more prominent shelf positions at Walmart and Target by offering lower prices, stronger promotions, exclusive products, and improved commercial terms. The strategy appears to be paying off: Haleon's share of the US consumer-health market rose from 11.4% in February to 12% by August, according to NielsenIQ data cited by Reuters. The company said improved placement has supported market-share gains in oral health, which includes Sensodyne, Aquafresh, and Polident, and better performance in adult vitamins after Centrum products were placed at eye level with promotional support. Walmart recently reduced prices on 11,000 items as elevated gasoline costs pushed shoppers to make more trade-offs, and even Walmart reported its slowest comparable-store sales growth in six years. More than 21% of Haleon's second-quarter US sales came from products sold with promotions, according to NielsenIQ data analyzed by Bernstein, and Reuters reported that Walmart and Target declined to comment. The immediate economics of the arrangements remain undisclosed.
Judge Lets Estée Lauder Expand Counterfeit Suit Against Walmart
A California district court judge has rejected Walmart's bid to dismiss a lawsuit brought by Estée Lauder, allowing the case to proceed and expanding its scope beyond the 17 products tested for authenticity. Estée Lauder filed the suit last February, accusing Walmart of facilitating the sale of counterfeit versions of its licensed products by its namesake banner, La Mer, Le Labo, Clinique, Aveda, and Tom Ford, which were sold by third parties on Walmart's website. The complaint also claims Walmart allowed Estée Lauder trademarks to be used in its search engine, enabling the retailer to further profit from those sales. Walmart argued the complaint lacked factual allegations tying it to other products sold by third-party sellers on Walmart.com and that the products were not sufficiently related to warrant inclusion in a single suit. Judge Hernan Vera ruled that Walmart's request for dismissal is unjustified at this stage, opening the opportunity for Estée Lauder to expand its lawsuit beyond the 17 items tested.
Walmart Opens New York Fashion Pop-Up to Push Apparel Private Labels
Walmart Inc. is aiming to transform the image shoppers associate with its clothes aisles, creating a fashion pop-up in New York City to coincide with New York Fashion Week. The event showcases private labels including Free Assembly and Scoop to a more fashion-forward crowd, and will also highlight Avia, the debut of Walmart's new modern-bohemian label, Scenario, and new designs from designer Brandon Maxwell. Prices remain firmly on the Walmart side, with the pop-up including Free Assembly pieces such as a cashmere jumper for $45 and fleece items for $28. The retailer has spent years growing its grocery business and winning over higher-income shoppers, and apparel gives it a second chance to convince those same people to spend more once they are already in the shop or app. Clothes and private-label products help build customer loyalty while giving Walmart more control of assortment and pricing, and the true test for investors will come after Fashion Week, when it becomes clear whether buyers start to think of Walmart as a destination for clothing rather than just a place to buy clothes while shopping for groceries.
Walmart Settles Federal Opioid Case for $50 Million
Walmart has agreed to pay $50 million to settle a federal opioid lawsuit, resolving a case that the Justice Department had suggested could result in billions of dollars in penalties. The retailer did not admit liability and called the payment immaterial, noting it earned $11.7 billion in net income in the six months ending July 31. The settlement, filed in federal court in Wilmington, Delaware, ends nearly six years of litigation and includes requirements for stronger pharmacy oversight and a hotline for reporting suspected unlawful dispensing. This follows Walmart's $3.1 billion settlement in 2022 with state and local governments over opioid-related claims.
Walmart has received a $2.9 billion tariff refund from the U.S. government after the Supreme Court struck down the previous tariff regime, but the company plans to use the windfall to roll back prices rather than boost profits. The refund represents nearly 30% of the roughly $10 billion returned to S&P 500 companies this year, reflecting Walmart's heavy exposure to imported goods. Management expects the positive financial effect to appear in third-quarter 2026 results, with lower prices spreading across U.S. stores in the fourth quarter. Home Depot received the second-largest refund at $750 million, and Amazon collected $640 million. The price cuts may strengthen Walmart's competitive position, though the refund is temporary, and Wall Street remains optimistic with a Strong Buy consensus and an average price target of $128.71.
Walmart's Advertising Business Grows 38% in Q2 Fiscal 2027
Walmart's global advertising business grew 38% year over year in the second quarter of fiscal 2027, with Walmart U.S. advertising, including VIZIO, also up 38%, led by a 43% rise in Walmart Connect, while international advertising advanced 20% on Flipkart Ads. The growth contributed to a 96-basis-point expansion in gross profit rate to 25.4%, and adjusted operating income rose 17.4% in constant currency, though tariff refunds provided a significant benefit. Walmart is expanding its advertising reach through the acquisition of Vibe, which adds self-service tools for small and medium advertisers, but integration costs are expected to create an approximately 20-basis-point headwind to fiscal 2027 operating income growth. The company's shares have gained 4.8% over the past year, compared with the industry's 3.5%, and its forward price-to-earnings ratio stands at 34.75, above the industry's 31.79 but below Costco's 44.77. The Zacks Consensus Estimate for current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Walmart and Home Depot Differ on Tariff Refund Use
Walmart and Home Depot are both receiving significant tariff refunds but are handling them differently, as reported by CNBC. Walmart CFO John David Rainey said the company is eligible for roughly $2.9 billion in refunds, with just under $100 million still outstanding, and that the boost contributed to a 1.6% increase in Walmart U.S. gross profit. Rainey said Walmart plans to use the funds to lower prices for consumers, with the impact expected in the current fiscal third quarter. Home Depot received $730 million in tariff refunds during its fiscal second quarter, using about $685 million to reduce cost of goods sold, which lifted gross margin by 0.3 percentage points; CFO Richard McPhail called that "the vast majority" of what the company expected. In contrast, Lowe's CEO Marvin Ellison said the company will not use its refund to cut prices, instead aiming to "deliver strong profitability for our shareholders."
T-Mobile Launches Super Essentials Saver Plan at Walmart
T-Mobile has quietly introduced a new low-priced phone plan called Super Essentials Saver, available exclusively at Walmart, following a series of price increases and discount changes. The plan costs $25 per line per month for a limited time with autopay, or $30 without it, and is cheaper than the Essentials Saver 2.0 plan at $50 per line per month. It offers up to two lines, unlimited 5G data with 50GB of premium data, unlimited talk, text, and hotspot, plus coverage in Canada and Mexico, and is only available to new T-Mobile customers. The launch comes as T-Mobile faces pressure to win price-conscious customers, with postpaid phone churn rising to 0.93% in 2025 from 0.86% in 2024, and amid intensifying wireless competition that has driven average unlimited plan costs down by over 10%.
DOJ Expands Beef Price Probe to Eight Retailers Including Walmart and Amazon
The Department of Justice has expanded its beef price investigation to include eight major grocery retailers—Walmart, Costco, Amazon, Kroger, Publix, Albertsons, Aldi, and Ahold Delhaize USA—amid concerns over high beef prices and inflation ahead of the midterm elections. The DOJ announced the probe on September 1, calling beef prices a priority, and it builds on an earlier antitrust investigation into meatpackers launched in May. The average price of ground beef hit $6.89 per pound in July, up 10% from a year earlier, driven by drought, screwworm infestations, and tariffs. The administration has also taken steps to ease prices, including allowing imports of Brazilian and Argentine beef, which drew backlash from ranchers. Meanwhile, meatpackers like Tyson and JBS have reported significant losses, and the DOJ's scrutiny of retailers marks a new front in the effort to address affordability.
Walmart Rises 2.8% as DOJ Widens Beef-Pricing Review
Walmart, the world's largest retailer, jumped nearly 2.8% to $109.015 on Thursday even as the Justice Department widened its beef-pricing review, contacting eight retailers including Walmart, Costco, and Amazon amid record beef prices. The scrutiny is not an accusation of wrongdoing, as Walmart has not been charged with price-fixing or antitrust violations. The review runs alongside a separate investigation into meatpackers, expanding the government's focus across the beef supply chain. Walmart's second-quarter revenue reached $187.9 billion, with first-half inventory at $61.6 billion, and the stock trades 5.46% above its GF Value estimate of $103.37, reflecting investor confidence in its defensive strength.
Walmart Expands Restaurant Delivery with Dunkin' Partnership
Walmart Inc., the largest U.S. retailer, is pushing further into restaurant delivery through a new partnership with Inspire Brands, starting with Dunkin' as the first major brand to expand via the service. The rollout begins with about 150 Dunkin' locations inside Walmart stores before moving toward most of its roughly 10,000 locations nationwide. Customers will be able to add restaurant food and drinks to Walmart deliveries, leveraging the same last-mile network already used for groceries and general merchandise. With about 90% of the U.S. population living within 10 miles of a Walmart store, the company has a large existing footprint that could pressure competitors like DoorDash and Uber Eats if more restaurant chains join. The next catalyst is how quickly Walmart expands beyond Dunkin' and whether other national chains follow.
Citi opens downside catalyst watch on Kroger amid Walmart price war
Citi has opened a short-term downside catalyst watch on Kroger ahead of its second-quarter results on Sept. 11, warning that intensifying price competition from Walmart could pressure the grocer's comparable sales and margins. The bank highlighted Walmart's roughly $3 billion tariff refund, largely invested in food and grocery prices to gain market share, a figure that compares to Kroger's overall EBIT of $5 billion. Analyst Paul Lejuez noted the competitive dynamic seems more pronounced than in the first quarter and may not be short-term, as Walmart hopes vendors will help fund price investments beyond the third quarter. Citi expects roughly in-line results, modeling identical sales up 1% and earnings of $1.05 per share, but anticipates management cutting full-year comp guidance and guiding earnings to $5.00-$5.20. The bank lowered its full-year estimate to $5.05 from $5.22, cut its 2027 forecast, and reduced its price target to $57 from $61, citing a more cautious gross margin view and persistent competition.
Walmart's market capitalization has fallen to around $820 billion, roughly $180 billion below the $1 trillion mark it first reached in February, but the exit from the trillion-dollar club is likely temporary given the company's strong underlying performance. After becoming the first traditional retailer to close a trading day at a $1 trillion valuation on February 3, 2026, shares tumbled 9% following its August earnings report due to a disappointing outlook, leaving the stock about 20% to 22% below the threshold. However, the company's latest quarter showed revenue of $187.9 billion, up 5.9%, with global e-commerce sales growing 23% for the tenth consecutive quarter of at least 20% growth, and operating income jumping 28.8% to $9.38 billion. Higher-margin segments are driving growth, with global advertising revenue up 38% and membership fee revenue up 17%, while management raised full-year fiscal 2027 adjusted EPS guidance to $2.80 to $2.87. With earnings growing near 19% and these high-margin engines expanding at double-digit rates, closing the gap to $1 trillion does not require a heroic rerating, making the current removal likely a temporary setback.
Walmart International's Digital Mix Rises, Margins Under Pressure
Walmart Inc. reported that its International segment's e-commerce sales rose 19% in the second quarter of fiscal 2027, with digital mix reaching about 30% of net sales, up 300 basis points year over year. China led the growth with e-commerce sales up 26% and digital mix at 55%. International operating income increased 16.6% to $1.4 billion, but constant-currency operating income rate declined 9 basis points to 3.9%, reflecting ongoing investments and mix pressures. The company's shares have gained 8.1% over the past year, and it trades at a forward P/E of 34.07, above the industry's 30.67.
Walmart Marketplace Sales Jump 52% as Fulfillment and Expansion Drive Growth
Walmart Inc. reported that its U.S. marketplace sales surged 52% in the second quarter of fiscal 2027, driven by a broader assortment and increased use of Walmart Fulfillment Services. Nearly 50% of U.S. marketplace volume flowed through Walmart Fulfillment Services during the quarter, up nearly 400 basis points from a year earlier. The company also expanded its marketplace capabilities into Mexico and Canada during the quarter. Walmart's shares have gained 6.3% over the past year, compared with the industry's 4.8% growth, while its forward 12-month price-to-earnings ratio stands at 33.51, higher than the industry's 30.67. The Zacks Consensus Estimate for Walmart's current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Walmart, e.l.f. Beauty cut prices with tariff refunds
Major retailers and consumer goods companies are directing tariff refund payments toward price cuts as inflation-fatigued shoppers pull back on spending, according to The Wall Street Journal. The refunds trace back to a Supreme Court decision earlier this year holding that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose those tariffs, an outcome that set off more than $160 billion in payments back to importers. Walmart said it rolled back prices on 11,000 items, including ground beef, using roughly $2.9 billion in tariff refunds, with CFO John David Rainey noting shoppers began making visible spending trade-offs in June as gas prices climbed above $4 a gallon. E.l.f. Beauty, which received about $50 million in refunded tariff payments, permanently lowered prices across around 10% of its catalog after a test that dropped the Halo Glow Skin Tint's price by $4 and drove unit sales up close to 40%; net sales for the quarter ended June 30 climbed 36% to $479.4 million. Tractor Supply channeled its refunds into shielding customers from freight and fuel cost increases, lowering prices on products including pine shavings and premium pet food, while its gross margin edged up to 37.1% for the quarter ending June 27 from 36.9% a year earlier. Not every retailer is passing refunds to shoppers: Lowe's CEO Marvin Ellison told CNBC the company received roughly $80 million in refunds and chose to direct them toward shareholder returns, and Kohl's CEO Michael Bender said the company put $100 million of its refunds into its gross margin and plans to invest the remainder in deeper inventory. Burlington Stores said it plans to reinvest all $55 million of its tariff refunds into lower prices over the second half of its fiscal year.
Walmart has settled a long-running Justice Department lawsuit accusing its pharmacies of improperly dispensing opioids, removing a potentially multibillion-dollar legal overhang that has followed the retailer since 2020. Financial terms were not disclosed, limiting investors' ability to immediately quantify the cost, but the resolution reduces uncertainty around one of Walmart's most significant remaining opioid cases. The federal government alleged Walmart pharmacies repeatedly violated the Controlled Substances Act by dispensing opioid prescriptions despite warning signs that some prescriptions were invalid. The settlement follows years of litigation, and Walmart and the government have now filed a joint stipulation seeking dismissal of the case. Walmart shares rose about 0.5% following the news. This is not Walmart's first major opioid resolution; the retailer agreed in 2022 to pay $3.1 billion to resolve thousands of lawsuits brought by state and local governments. The federal settlement removes an important legal uncertainty, but investors should not treat it as the end of Walmart's opioid exposure, as several opioid-related cases remain pending in federal and state courts.
Walmart Settles Opioid Lawsuit, Invests $1.3B in Automation
Walmart has agreed to settle a Department of Justice lawsuit over its pharmacy opioid dispensing practices, closing a long-running federal dispute. The company also plans to invest US$1.3 billion in a highly automated fulfillment center in Georgia to expand logistics and same-day delivery capacity, and is backing a new AI-driven US$500 million supplier lending fund to increase financing access across its supply chain. These moves align with Walmart's strategy to diversify income through high-margin businesses like Walmart Connect and Walmart+, while improving supply chain efficiency. The settlement reduces regulatory uncertainty, and the investments support its focus on AI-powered logistics, similar to efforts by Target and Amazon.
Walmart Inc. reported a 5.9% increase in Q2 revenue to $187.9 billion, with global e-commerce sales up 23%, advertising revenue up 38%, and membership revenue up 17%, highlighting its expansion beyond traditional retail. The company's adjusted operating income rose 17.4% in constant currency, and gross margin expanded 96 basis points, while operating cash flow reached $19.7 billion and free cash flow fell to $5.5 billion. Management raised its FY 2027 outlook to 4%-5% sales growth and 7%-8.5% adjusted operating income growth. Bernstein analyst Zhihan Ma maintained a "Buy" rating with a $142 price objective, noting the quarter ended at the high end of guidance and that softer US comparable sales were aided by pharmacy factors. Bears point to Q3 operating income growth guidance of only 2%-4% due to tariff refunds being redirected to lower prices, and inventory rose 6.7% year over year. Short interest is low for both Walmart and Amazon, and hedge fund ownership of Walmart increased from 99 funds in Q1 2026 to 111 in Q2.
Walmart Settles Federal Opioid Lawsuit Without Disclosing Cost
Walmart has settled the federal government's opioid lawsuit, ending a legal battle that began in 2020 over alleged Controlled Substances Act violations. The retail giant, whose stock stood at $103.08, did not disclose the settlement amount, leaving investors unable to assess the financial impact. The Justice Department had accused Walmart of knowingly filling invalid prescriptions, though a judge dismissed several claims. This settlement follows Walmart's $3.1 billion agreement in 2022 to resolve separate opioid claims from state and local governments, a sum that represented about 56% of its latest quarterly free cash flow of $5.5 billion. With the stock trading just 0.14% above its GF Value of $102.94, the undisclosed cost remains a key uncertainty for investors.
Target's Grocery Growth Accelerates but Still Trails Walmart
Target Corporation's food and beverage sales grew 7% in the quarter ended August 1, 2026, its fastest growth in that business in three years, yet the retailer still holds only about 5% of the US grocery market compared with Walmart Inc.'s 27%. The growth pulled shoppers into stores, with traffic rising 3.6% and snack sales up 15%, and Target plans roughly 600 new private-label food products over two years, expected to add more than $2 billion in growth. A nearly $1 billion tariff refund allowed Target to lower prices without hurting margins, and the company raised its annual sales forecast to about 5% from 4%. However, grocery still makes up less than a quarter of Target's merchandise sales, and its food business remains roughly 12 times smaller than Walmart's, with Target priced about 5% higher on identical items. Gross margin expanded to 33.7%, but home furnishings and apparel stayed roughly flat, showing grocery traffic isn't reliably spreading into the rest of the store.
Walmart to Accept Apple Pay and Google Pay by End of 2026
Walmart Inc. will accept Apple Pay and Google Pay across all its U.S. stores and Sam's Club locations by the end of 2026, ending a years-long holdout, as reported by Bloomberg on August 21, 2026. The rollout begins August 24 at select locations, with fuel stations gaining the capability by mid-2027. Walmart had previously relied on its own proprietary Walmart Pay system, preferring QR-code technology that gave it more control over transaction data, rather than supporting near-field communication wallets like Apple Inc.'s Apple Pay. Customers will be able to tap contactless cards, phones, or smartwatches at checkout and add Walmart, Sam's Club, or OnePay cards to their digital wallets. For Apple, this closes one of the last major gaps in Apple Pay's retail coverage, as more than 90% of U.S. retailers already accept Apple Pay, and the service holds roughly 92% market share among U.S. mobile wallets, according to Capital One data. However, Walmart is giving up some data control, and the financial upside for Apple per transaction is likely modest relative to the headline significance of the deal.
Walmart's Q2 Growth Strong but Costs and Valuation Raise Concerns
Walmart reported fiscal second-quarter results on August 20, with revenue climbing to $187.9 billion, global e-commerce growing 23%, and advertising sales jumping 38%. The company's US e-commerce sales rose 24%, marking its tenth straight quarter of growth above 20%, while Sam's Club US e-commerce climbed 26% and US marketplace sales jumped 52%. Walmart invested roughly $2.9 billion in tariff refunds into everyday prices, pushing rollbacks to 11,000 items, and raised full-year sales guidance to 4% to 5% growth and adjusted earnings guidance to $2.80 to $2.87 per share. However, the company faces cost pressures, including more than $2 billion in incremental fuel costs this year, and US consumer confidence fell in August to its lowest level since January. Walmart's stock trades at 35.84 times forward earnings, a premium that leaves little room for error, while its dividend yield is just 0.9%.
Target's Comeback Quarter Boosted by Nearly $1 Billion Tariff Refund
Target Corporation reported its second straight quarter of comparable sales gains, with a $994 million tariff refund contributing meaningfully to a profit beat, after the US Supreme Court ruled that President Trump overstepped his authority in imposing the tariffs. Comparable sales grew 3.8%, beating the 2.5% estimate, driven by a 3.6% rise in store visits and an 8.7% jump in online sales. The company raised its yearly sales forecast for the second time this year to about 5% from 4%, and shares have jumped over 57% in 2026. However, the nearly $1 billion refund is a one-time boost that will make next year's comparisons harder, and growth in clothes and home goods remained weak. Walmart also booked nearly $2.9 billion in similar refunds this quarter, indicating a temporary sector-wide benefit.
Walmart, Goldman Sachs, JD Power warn of consumer stress
Walmart, Goldman Sachs, and JD Power are issuing red alerts over U.S. consumers, with Walmart CEO John Furner citing fuel prices as a key stress point and noting increased signs of stress at lower income levels. Goldman Sachs expects real consumer-spending growth to slow to between 1% and 1.5% in the second half of 2026, down from 2.5% in June, citing fading tax refund boosts and elevated energy prices. JD Power's Financial Health Report found 66% of U.S. consumers were financially unhealthy in July, with 77% changing spending habits, and 29% taking actions indicating serious financial distress. The report also highlighted that 27% cut back on groceries or skipped meals, 18% borrowed from friends or family, and 9% missed rent or mortgage payments. These pressures reflect cumulative price increases since 2020: food up 34%, housing up 33%, and energy up nearly 43%, according to the Bureau of Labor Statistics.
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