Why Shares Of Walmart Are Plummeting Today

Shares of Walmart, Inc WMT are trading lower today after the company revised its second-quarter and full-year 2023 guidance. 

Why Is It Moving?

Last night, the retail giant revised its quarterly and full-year profit guidance and said that inflation is impacting consumer sending patterns. This shift in consumer spending is causing inventory to stay on shelves longer and forcing retailers to implement markdowns.

Adjusted earnings per share for the second quarter and full year are expected to decline around 8 to 9% and 11 to 13%, respectively.

Operating income for the second-quarter and full-year is expected to decline 13 to 14% and 11 to 13%, respectively. 

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars,” CEO Doug McMillon said in a news release.

Price Action: Shares are down 9.03% and hovering at $120.10 during today’s premarket session.

Photo: Courtesy of  Marques Thomas on Unsplash