Walmart Inc. lowered its profit outlook for the second quarter and the year, saying rising prices on food and gas are forcing shoppers to cut back.
"The increasing levels of food and fuel inflation are affecting how customers spend," said Walmart CEO Doug McMillon in a statement.Walmart Inc. on Monday lowered its profit outlook for the second quarter and the full year, saying rising prices on food and gas are forcing shoppers to cut back on discretionary items, particularly clothing, that carry higher profit margins.
The news from Walmart comes as the Federal Reserve is set to announce another hefty hike in its benchmark interest rate on Wednesday. Together with its previous rate increases, the Fed's moves will make borrowing costlier for individuals and companies and likely damper the economy over time. The government's consumer price index soared 9.1% in June compared with a year ago, the biggest yearly increase since 1981, with nearly half of the increase due to higher energy costs.
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'A cause for concern': Walmart cuts profit outlook as shoppers adapt to inflation'The increasing levels of food and fuel inflation are affecting how customers spend,' said Walmart CEO Doug McMillon in a statement.
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'A cause for concern': Walmart cuts profit outlook as shoppers adapt to inflation'The increasing levels of food and fuel inflation are affecting how customers spend,' said Walmart CEO Doug McMillon in a statement.
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