Walmart absorbed approximately $175 million of higher-than-planned fuel costs in the first quarter of fiscal 2027, reducing operating income growth by about 250 basis points. Adjusted operating income in constant currency still increased 5.1% to $7.5 billion, while reported operating income rose 5%. The company maintained its fiscal 2027 outlook for adjusted operating income growth of 6% to 8% in constant currency and expects second-quarter growth of 7% to 10%. Walmart also warned that elevated fuel costs could lead to somewhat higher retail price inflation in the second quarter and second half of the year. Kroger and Costco are also facing fuel-related margin pressure, with Kroger's gross margin declining 30 basis points to 22.7% and Costco's reported gross margin rate falling 21 basis points to 11.04%.
Walmart Inc.Walmart absorbed $175M in higher fuel costs, reducing operating income growth by 250 bps.
Costco Wholesale CorpCostco's gross margin rate fell 21 basis points due to fuel costs.
Kroger CompanyKroger's gross margin declined 30 basis points due to fuel costs.
