Walmart cuts profit forecast, blames food and fuel inflation

Walmart Inc on Monday said it was cutting its forecast for full-year profit, due to pricing actions aimed to improve inventory levels at Walmart and Sams Club in the United States.

Adjusted earnings per share for the second quarter will decline around 8 per cent to 9 per cent and full-year earnings will fall 11 per cent to 13 per cent. Excluding divestitures, full-year earnings per share are expected to drop 10 per cent to 12 per cent, the company said in a statement.

“The increasing levels of food and fuel inflation are affecting how customers spend ... we’re now anticipating more pressure on general merchandise in the back half,” Doug McMillon, Walmart’s chief executive officer, said.