Walmart Inc. has slashed its quarterly and full-year profit outlook, citing rising food and gas prices, which has prompted consumers to cut back on other items like clothing and electronics.
The retailer said in a business update on July 25 that the revised outlook was “primarily due to pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the U.S. and mix of sales.”
Walmart said it now anticipates adjusted earnings per share for the second quarter and full year to decline around 8–9 percent and 11–13 percent, respectively. That is much steeper than the 1 percent fall it previously forecast for the full year….