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• Shares of the company plunged nearly 10% in morning trading
Walmart Inc (NYSE: WMT) reported lower-than-expected earnings for the first quarter on Tuesday and also cut its full-year profit outlook.
Shares of the company plunged nearly 10% in morning trading.
The retailer missed earnings estimates for the first time in five quarters as it posted earnings of $1.30 per share in the first quarter, against expectations of $1.48 per share.
The largest retailer of the US, which operates more than 5,000 stores, blamed rising costs of fuel and labor for the performance.
With the rising inflation, consumers are spending cautiously and cutting their expenses, with many preferring private-label brands.
Revenue of the company rose to $141.57 billion from $138.31 billion a year earlier, above Wall Street’s expectations of $138.94 billion.
For the first quarter, Walmart reported 3% rise in U.S. same-store sales, due to higher sales of food and health and wellness products.
Lower profit expectations
Walmart said it expects earnings per share (EPS) for the year decrease by about 1% compared with the mid-single-digit increase it previously expected.
The retailer expects second quarter sales to rise 5% and raised its net sales to increase about 4% in constant currency for the full year, from 3% earlier.
Picture Credits: Reuters
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