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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