Companies in the retail sector are revealing the consumer spending strains. That led to Walmart (WMT) stock sliding after posting results. Conversely, Advance Auto Parts (AAP), which sells products people need for repairing their vehicles, jumped.
Walmart fell by around 9% after posting revenue of $177.75 billion (+7.3% Y/Y). Non-GAAP EPS was $0.66. The company said that it extended rollbacks (lowering prices for goods) since the second half of 2025. That lifted weekly active users by over 10%.
The company absorbed around $175 million related to higher fuel costs from its global distribution and fulfillment operations. Profit margins are robust, thanks to e-commerce margins of around 12%.
Membership growth is a tailwind. For example, Walmart saw a 30% growth in both membership and ads. With that trajectory, the company should report margin growth in Canada and Mexico.
AAP Stock Rose
Advance Auto Parts jumped after posting revenue of $2.61 billion (+1.2% Y/Y). It owed the strong same-store sales outlook to consumers getting tax refunds. Peak driving volumes after Memorial Day are another tailwind that will lift results. Despite the consumer household budgets under pressure from inflation, AAP’s sales in the Pro division will lift profits.
Your Takeaway
Investors should avoid widely held retail stocks like Walmart. Consider AAP stock instead. Firms that sell goods that help consumers save money will thrive in this environment.
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