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Walmart delivered another strong quarter, with sales climbing 7.3% to $177.75 billion and earnings per share hitting 67 cents, exactly where analysts expected, according to the company’s April 30 report. The retailer’s chief financial officer, John David Rainey, said the dip in gasoline gallons bought at Walmart and Sam’s Club stations—falling below ten gallons per visit for the first time since 2022—is “an indication of stress” for many Americans.

The earnings beat underscores Walmart’s role as a barometer of U.S. consumer spending. More than 150 million shoppers browse its website or walk its aisles each week, and comparable sales at U.S. stores rose 4.1% while online sales jumped 26% in the quarter. These figures show that even as inflation bites— the Consumer Price Index rose 3.8% year‑over‑year, per the latest data—Walmart’s low‑price promise continues to attract a broad swath of shoppers.

However, the retailer sounded cautious about the rest of the year. Rainey told analysts that higher fuel costs have already taken a bite out of profits, and the company may have to raise prices later if gasoline prices stay elevated. For the second quarter, Walmart projects sales growth of 4%‑5% year‑over‑year and earnings of 72‑74 cents per share, a step down from the 75 cents per share analysts had expected.

The outlook reflects broader economic uncertainty. Soaring gasoline prices, driven in part by the Iran war that began in late February, have pushed the average price of regular gasoline about 45% above its level a year ago. While wealthier households are still spending confidently, lower‑income shoppers are tightening budgets, a pattern that economists describe as a “K‑shaped” economy.

Walmart’s cautious guidance contrasts with the more upbeat outlook from some rivals. Target, for example, raised its annual revenue outlook despite a similar consumer environment, while home‑improvement giants Home Depot and Lowe’s reported strong sales but warned that customers are postponing larger projects.

As the retail landscape navigates higher fuel costs and lingering inflation, Walmart’s performance will remain a key indicator of how U.S. consumers balance price sensitivity with demand for convenience.