Walmart shares fell more than 9% Thursday after Chief Financial Officer John David Rainey warned that gasoline above $4 is changing how consumers spend, adding to concerns over the retailer's weakest U.S. sales growth in more than six years. Rainey told analysts that when fuel prices increase and get above $4, there is perhaps a psychological impact, and consumers are making trade-offs. Walmart also expects fuel-related costs to run about $2 billion above its original forecast. Growth in customer transactions slowed to 1.5% from 3% in the previous quarter, while average spending per transaction rose just 1.1%, down from 3.1% a year earlier. The pressure comes as President Donald Trump escalates his confrontation with Iran, with Brent crude climbing toward $94 a barrel Thursday.
Walmart Inc.CFO warns high gasoline prices are curbing consumer spending, slowing transaction growth and raising costs.
