Walmart slashes profit forecast as consumers cut back on spending

Walmart slashes profit forecast as consumers cut back on spending

Walmart slashes profit forecast as consumers cut back on spending

Walmart on Monday slashed its profit forecast as surging prices for food and fuel prompted customers to cut back on discretionary purchases.

The announcement led to its shares slid 10 percent in trading after the bell.

Shares of rivals including Target and Amazon.com also fell after Walmart’s warning, which signalled a “proverbial train wreck” for retailers, Burt Flickinger, managing director at Strategic Resource Group, was quoted as telling Reuters.

Walmart, described as a bellwether for the retail sector that caters to cost-conscious shoppers, said its full-year profit would decline 11 percent to 13 percent, compared to the 1 percent fall it previously forecast.

Neil Saunders, managing director of retail at GlobalData, was quoted as calling the warning a “cause for concern” for Walmart that highlighted the pressure on all retailers.

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