Walmart issues profit warning as costs soar and inflation bites
US retail giant Walmart has warned on profits for the second time this year, as soaring inflation curbed customer spending
In an update overnight, Walmart said it now expects full-year profits to fall by as much as 13%. The announcement sparked a 10% slump in the retail giant’s stock market value in after-hours trade and dragged down shares in rivals Amazon and Target.
When Walmart warned on profits for the first time in May, it said it expected full-year profits to fall just 1% by year’s end.
“The increasing levels of food and fuel inflation are affecting how customers spend,” its chief executive Doug McMillon said in a statement on Monday.
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