Walmart tumbles after cutting full-year profit outlook

Walmart cut its profit forecasts for the second quarter and full year, citing the need to lower prices to clear out bloated inventories.

Adjusted earnings per share will fall as much 13 per cent in the current fiscal year as US consumers shift spending to necessities amid soaring inflation, Walmart said in a statement Monday. Two months ago, the company had said earnings per share would only dip about 1 per cent.

Walmart is following rival Target Corp. in cutting its profit forecast again as retailers contend with higher costs and stockpiles of unwanted merchandise. The highest inflation in four decades is forcing consumers to prioritize spending on groceries while shying away from big-ticket items, Walmart said.