Walmart U.S. Sales Rise 4.5% as Rising Expenses Pressure Operating Leverage

Key Facts

In a move reflecting the resilience of American consumer demand, Walmart reported a 4.5% increase in its U.S. sales during the fiscal first quarter. According to reports, this growth highlights the retail giant's ability to maintain volume despite broader economic shifts. However, the positive sales performance was tempered by expense deleverage, as operational costs grew faster than total revenue, leading to a 56-basis-point increase in the expense rate.

The rise in costs was primarily driven by increased depreciation and higher healthcare expenses, which outpaced the company's revenue gains. This dynamic impacted the firm's operating leverage, raising concerns about margin sustainability even as top-line growth remains healthy. Per market data, this internal cost pressure coincides with mixed global retail signals, such as the 0.1% decline in Italian retail sales reported earlier this month.

Walmart (WMT) shares stood at $111.48 at the close of August 10, 2026, after trading within a daily range of $110.76 to $111.60. Investors will be watching for broader economic catalysts, including U.S. labor market data and consumer sentiment trends, to determine if the retailer can offset rising internal costs with continued sales momentum.