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Walmart cuts profit guidance amid rising inflation

By Huw Hughes

Jul 26, 2022

Report

Image: Walmart Inc.

US retail giant Walmart has lowered its profit outlook for the second quarter and full year as consumers cut back on spending amid rising inflation.

It said the decision was “primarily due to pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the US and mix of sales”.

The company said it expects adjusted earnings per share for the second quarter and full year to decline by around 8 percent to 9 percent and 11 percent to 13 percent, respectively.

The retailer had previously expected its full-year profit to drop by just 1 percent.

Walmart president and CEO Doug McMillon told investors: “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart US is requiring more markdown dollars.

“We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart US.”

WALMART