Walmart reported positive earnings, but U.S. consumers are struggling with rising costs.

Shares of Walmart (NASDAQ: WMT) were moving lower on Thursday after the retail giant, which receives nearly 10% of non-automotive retail spending in the U.S., said it was seeing evidence of consumers cutting back due to higher gas prices and the impact of the Iran war.

Walmart delivered another strong quarter of sales as the discounter’s speedy deliveries and low prices served as a magnet for shoppers across the income spectrum.

Walmart on Thursday revealed a disappointing full-year forecast, even after it saw relatively strong sales in the first quarter, as high gas prices eat into shoppers’ wallets.

Shares of Walmart (NYSE:WMT) are down 7% in midday trading Thursday, a striking move for a defensive mega-cap that just reported quarterly results before the open. The reaction has dragged on peers, though not uniformly.

Walmart maintained its full-year forecast, including net sales growth of 4% to 5% and operating income growth of 7% to 10%. Yet CEO John Rainey noted that higher tax refunds likely boosted sales in the first quarter.

The retailer said it would keep store prices steady as it predicts that rising fuel costs could draw more cash-strapped shoppers.

It’s the "perfect" little ride.