Walmart CFO John David Rainey said the timing of Flipkart’s Big Billion Days sale will shift between the third and fourth quarters, creating a headwind of more than 100 basis points to third-quarter sales growth.
- Rainey added that Walmart’s operating income outlook also reflects the continued prioritization of tariff refunds received in the second quarter toward customer experience and price investments in the second half.
- Despite Q3 headwinds, Walmart raised its fiscal 2027 net sales growth outlook to 4% to 5% in constant currency, up from its previous 3.5% to 4.5% forecast.
- Walmart also reported a decline in comparable sales growth during the quarter, to 2.6% in Q2 from 4.6% in the year-ago period.
Walmart Inc. (WMT) shares were headed for the worst single-day fall in three months after the retailer’s third-quarter guidance fell below expectations, with the company flagging a timing shift in a major Flipkart sale as a headwind to sales growth.
Walmart expects Q3 net sales to increase 3% to 3.75% in constant currency, while adjusted operating income is expected to rise 2% to 4%. The firm expects adjusted earnings per share (EPS) of $0.62 to $0.64, missing Wall Street’s $0.68 estimate, according to Fiscal.ai data.
Walmart shares were down more than 6% in Thursday’s pre-market trade. WMT was among the top trending tickers on Stocktwits at the time of writing.
WMT’s Q3 Guidance Faces Sale Timing Headwind
Walmart CFO John David Rainey said the timing of Flipkart’s Big Billion Days sale will shift between the third and fourth quarters, creating a headwind of more than 100 basis points to third-quarter (Q3) sales growth.
He added that Walmart’s operating income outlook also reflects the continued prioritization of tariff refunds received in the second quarter (Q2) toward customer experience and price investments in the second half.
“For this reason, I encourage you to consider Q2 and Q3 performance together to assess the underlying growth of the business,” said Rainey.
Walmart owns an 81.3% stake in Indian ecommerce giant Flipkart. Flipkart’s biggest sale of the year, the Big Billion Days sale, is usually held ahead of the Diwali festival, which falls in November this year. Flipkart held the Big Billion Days sale in 2025 in September, with the Diwali festival falling in October.
Despite the Q3 headwinds, Walmart raised its fiscal 2027 outlook. The company now expects net sales to grow 4% to 5% in constant currency, compared with its previous forecast of 3.5% to 4.5%.
Adjusted operating income growth is expected at 7% to 8.5%, up from the prior 6% to 8% outlook, while adjusted EPS is expected at $2.8 to $2.87, compared with $2.75 to $2.85 previously. Analysts expected Walmart’s FY27 EPS to come in at $2.9.
Shoppers Pull Back On Spending
Walmart also reported a decline in comparable sales growth during the quarter, to 2.6% in Q2 from 4.6% in the year-ago period. Walmart-owned warehousing retail chain, Sam’s Club, reported a similar decline in comparable sales growth during the quarter, falling to 4.4% from 5.9%.
Walmart reported EPS of $0.81 on revenue of $187.9 billion, compared to Wall Street estimates of an EPS of $0.74 on revenue of $186.8 billion.
What Retail Traders Think Of WMT Stock
Retail sentiment on Stocktwits around Walmart trended in the ‘extremely bullish’ territory with message volumes at ‘high’ levels at the time of writing.
WMT stock is up 3% year-to-date and 13% over the past 12 months. The S&P 500 ETF (SPY) is up 20% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 26%.
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