Walmart Tumbles Most in S&P 500 as Forecast Warning Sows Gloom
- World’s biggest retailer reduces prices to clear merchandise
- Lower earnings outlook shows inflation is hitting demand
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Walmart Inc. fell after a surprise cut to its profit outlook that contrasted sharply with upbeat results early Tuesday from Coca-Cola Co. and McDonald’s Corp. Taken together, the business updates suggest consumers have little left over for discretionary goods as they spend more on food and fuel.
The retailer’s adjusted earnings per share will fall as much as 13% in the current fiscal year as US shoppers spurn big-ticket items and focus on buying less profitable groceries with consumer prices soaring, Walmart said Monday. Two months ago, the company said earnings per share would only dip about 1%. In February, it had predicted a modest increase.