Walmart Plows $2.9B Tariff Refund Into Price Cuts

Walmart is funneling the bulk of its $2.9 billion tariff refund into lower prices and customer experience upgrades, the company said Thursday, fulfilling a pledge it made in May.

CEO John Furner told analysts on the second-quarter earnings call that shoppers are feeling financial pressure. "We'll do everything we can to keep prices as low as we can for customers throughout the rest of the year," he said.

The announcement came as Walmart posted its slowest U.S. sales growth in six years. Comparable sales rose 2.6%, partly due to new pharmacy pricing rules and weakening consumer sentiment, the company said. Total revenue hit $187.9 billion, up 5.9% from a year ago.

CFO John David Rainey said the shift in spending became more visible when average U.S. gas prices topped $4 a gallon. "June was a little more obvious as we look at the quarter in terms of customers making tradeoffs, and it's why we have leaned so heavily into lower prices," he said.

Walmart's stock fell roughly 9% after the results, stoking broader concerns about household finances. The decline erased about $40 billion in market value.

Rainey said most tariff-related price cuts so far have targeted grocery and general merchandise, with discounts shifting across categories over time. Furner added that store-attributed sales will likely soften as customers move to digital channels, though stores are still fulfilling most of those orders.

Walmart's approach contrasts with that of Target, which earlier this week declined to link its $1 billion tariff refund directly to price cuts. CFO Jim Lee told reporters that the company is focused on delivering value for shoppers without specifying how the refund flows through.

Furner said customers are looking for value "across the basket at a time." The company plans to keep prices low through the rest of the year, he said.