Reportedly, Walmart Stores, Inc. (WMT) released first-quarter earnings below expectations and cut its profit outlook due to inflationary pressures, especially in food and fuel. Adjusted profit dropped to $1.30 a share during the first quarter ended in late April below $1.48 analyst estimates.
Retail giant, Walmart which for decades has championed “everyday low prices,” is vying for more customers as inflation pushes shoppers to look harder for bargains. However, the higher costs for merchandise, transportation, and labor pose a growing threat to profitability, imposing questions on Walmart to decide how much of those costs they will pass along to consumers.
For the current quarter, Walmart said it now expects earnings to be “flat to up slightly” compared with a prior view of a low- to mid-single-digit increase. Walmart Chief Executive Officer Doug McMillon informed Walmart will raise prices while looking to stay below its competitors, and will try to limit price hikes on entry-level food items.
For the full year, Walmart raised its forecast for same-store sales growth at US Walmart stores to about 3.5%, up from a prior view of “slightly above 3%.
Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page.
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