- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
SCS | -1.98% | 12.62 | $ | |
NGG | -2.7% | 66.97 | $ | |
CMSC | -0.16% | 24.74 | $ | |
BCC | -0.9% | 138.29 | $ | |
RBGPF | 100% | 58.93 | $ | |
CMSD | -0.16% | 24.89 | $ | |
RIO | -1.42% | 69.83 | $ | |
GSK | -2.81% | 38.37 | $ | |
BCE | -1.77% | 33.84 | $ | |
RELX | -1.46% | 46.61 | $ | |
JRI | -0.6% | 13.3 | $ | |
AZN | -2.12% | 77.93 | $ | |
RYCEF | 1.15% | 6.98 | $ | |
VOD | -0.52% | 9.69 | $ | |
BP | 0.28% | 32.46 | $ | |
BTI | -2.45% | 35.11 | $ |
Walmart cuts profit outlook as inflation bites shoppers
Walmart cut its profit outlook Monday as surging inflation prompts shoppers to cut back on higher-margin items as they contend with increased prices for gasoline, food and other staples.
The world's biggest retailer now expects a double-digit decline in operating income for both the second quarter and full year after previously projecting the potential for a slight increase for the second quarter and a decrease of about one percent for the year.
Not all of the latest figures were downgrades to Walmart's forecast, however.
The company now expects comparable sales growth of six percent for US stores in the second quarter, a slight upgrade from its prior outlook, reflecting heavy sales of food and consumables.
But this shift has come at the expense of other categories of merchandise, with the chain flagging apparel as a particularly weak domain in which it has cut prices to unload merchandise.
"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," said Chief Executive Doug McMillon.
"We're now anticipating more pressure on general merchandise in the back half."
Walmart's announcement reflects the reality that profit margins for groceries are "far lower" compared with other goods, said analyst Neil Saunders of GlobalData Retail.
The big chain has dealt with higher labor and freight costs during the pandemic, but has "not passed these costs on in-full, which has an impact on its profitability," Saunders said.
"We believe this is a trend playing out more widely: Most retailers are not struggling to grow their top lines, but they are struggling to maintain the high levels of profitability that were commonplace over the past few years."
Shares of Walmart sank 8.8 percent to $120.38 in after-hours trading.
Y.Uduike--CPN