Former Walmart U.S. CEO Bill Simon questions stock drop: 'It was about as good of a quarter as any retailer could have in any environment'
Investment
CNBC

Former Walmart U.S. CEO Bill Simon questions stock drop: 'It was about as good of a quarter as any retailer could have in any environment'

August 21, 2025
11:37 PM
2 min read
AI Enhanced
moneystocksretailconsumer staplesmarket cyclesseasonal analysismarket

Key Takeaways

Walmart lifted its full-year sales and earnings forecast, but the stock still slid 4.5%. The big-box retailer ended Thursday as the Dow's biggest loser.

Article Overview

Quick insights and key information

Reading Time

2 min read

Estimated completion

Category

investment

Article classification

Published

August 21, 2025

11:37 PM

Source

CNBC

Original publisher

Key Topics
moneystocksretailconsumer staplesmarket cyclesseasonal analysismarket

In this articleTGTWMT your favorite stocksCREATE FREE ACCOUNTwatch now5:5605:56Walmart's results show 'it's firing on all cylinders', says fmr

CEO Bill SimonFast MoneyWalmart's former U.S

CEO Bill Simon thinks Thursday's stock drop is bizarre.The big-box retailer lifted its full-year sales and earnings forecast, but the stock still slid 4.5%

Walmart Thursday as the Dow's biggest loser."It was as good of a quarter as any retailer could have in any environment," he said on CNBC's "Fast Money." "I don't get the decline in the market today at all."Simon, who ran Walmart U.S. from 2010 to 2014, cites Walmart's ability to engage shoppers with lower prices while absorbing tariffs as a key advantage."If you d them yesterday, I don't know why you don't love them today

They're expanding their margin," he said. "They are really hitting it on all cylinders."Simon is still active in the consumer space —now serving on the Darden Restaurants board and as Hanesbrands chairman

When it comes to Walmart, he sees the decision to raise guidance despite tariffs as a key reason for optimism."As far as the tariffs go, there's no tariff impact to that ," Simon said

He suggested investors may have been hung up on Walmart's first earnings miss in more than three years — which was mostly driven by one-off expenses including restructuring costs and insurance claims."It's a big number, but it's a one-time adjustment," said Simon. "It's not a... systemic issue."Simon hasn't always been bullish on Walmart's

In May 2024, he told "Fast Money" that high-income shoppers were creating a "bubble" at Walmart

His concern: They would return to premium retailers once inflation started to abate.But that hasn't happened

Simon now contends the pull of cheaper prices and convenience of having groceries and general merchandise in one place as magnetic."If they [Walmart] can keep those toplines going, and that's their forecast, they're going to be just a bear of a company," Simon said.Walmart s are up 8% so far this year

However, they're 7% below the record high hit on Feb. 14. for the Spotlight , a hand-curated collection of clips selected by CNBC's top editors and ducers

Your daily recap of top highlights and leading stories.Disclaimer