“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.
The results drove Walmart’s stock down 7% during pre-market trading Tuesday. Walmart, America’s largest retailer and employer, is an economic bellwether.
Walmart’s net income fell 25% to $2 billion during its latest quarter ending April 30 compared with the same stretch a year ago.
In February, Walmart said it expected its profit to increase by about 3% this year. But Walmart now expects profit to decease by about 1%.