Walmart Inc. warned rising fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers.
The world’s largest retailer said comparable sales in U.S. stores, excluding fuel, rose 4.1% in the latest quarter, slightly better than what Wall Street analysts were expecting.
It also forecast adjusted profit for the second quarter that missed expectations.
The mixed results show that the company continues to gain market share across income levels with its focus on low prices, fast delivery and wide assortment. But that emphasis on affordability is facing pressure as inflation accelerates and the conflict in Iran drives up fuel prices.
Walmart shares fell as much as 8% on Thursday, the steepest intraday drop since November 2023. The stock had risen 17% so far this year as of Wednesday’s close.
Two charged for AI deepfake porn
Federal prosecutors have charged two men with using artificial intelligence to create nude videos and photos of female celebrities under a newly enacted law meant to halt the spread of deepfake pornography.
Cornelius Shannon, 51, and Arturo Hernandez, 20, were both arrested Tuesday for generating sexually explicit AI content that drew millions of views online, according to criminal complaints.
The men — who do not appear to be connected — are among the earliest defendants to face charges under the Take It Down Act, a law signed last year by President Donald Trump that adds stricter penalties for publishing AI-created deepfakes and “revenge porn.” The bill drew bipartisan support.
Under the new law, the men now face up to two years in prison.
Attorneys for Shannon and Hernandez did not immediately respond to a request for comment.
