fmr. U.S. CEO Bill Simon

Walmart‘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 ended Thursday as the Dow’s biggest loser.

“It was about 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 liked them yesterday, I don’t know why you don’t love them today. Topline is growing. 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 business,” 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 business. 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 shares are up 8% so far this year. However, they’re about 7% below the record high hit on Feb. 14.

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