Walmart sounds the inflation alarm, and its stock tumbles

"Bottom-line results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure... than we expected"

Walmart (WMT) said Tuesday that higher costs and supply chain constraints squeezed its profit during its latest quarter. Walmart also slashed its profit outlook for the year, signaling that it expects inflation to continue to hurt its business.

"Bottom-line results were unexpected and reflect the unusual environment," Walmart CEO Doug McMillon said in a news release. "U.S. inflation levels, particularly in food and fuel, created more pressure" than the company predicted.