Walmart is concerned about the U.S. economic outlook this year after its latest earnings projections showed that consumers were under heavy pressure.
Shares of the retail giant rose 0.4 percent after the big-box retailer gave its weaker-than-expected outlook for the year ahead.
The world’s largest retailer saw its full-year earnings forecast (pdf) fall below estimates, as tight consumer spending due to high inflation, may lead to pressure on profit margins.
“The consumer is still very pressured,” Walmart CFO John David Rainey told CNBC.
“And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year.”…