Inflation is ‘requiring more markdowns to move through the inventory, particularly apparel,’ massive retailer says while lowering profit forecast
Shares of Walmart Inc. sank more than 8% in after-hours trading Monday after the retail giant lowered its profit forecast, disclosing that inflation has required the company to conduct more markdowns.
Executives now expect adjusted earnings per share to fall by 8% to 9% for the fiscal second quarter and 11% to 13% for the full year. Walmart’s WMT, -0.14% prior forecast called for earnings per share to be flat to up slightly during the second quarter and down 1% for the full year.
“Food inflation is double digits and higher than at the end of Q1,” the company stated in a release. “This is affecting customers’ ability to spend on general merchandise categories and requiring more markdowns to move through the inventory, particularly apparel.”
This is not a growth stock, a meme stock or even a cryptocurrency. It’s Walmart pic.twitter.com/CxwKlSLv83
— Not Jerome Powell (@alifarhat79) July 25, 2022