Walmart warns earnings will be lower than forecast

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World’s largest retailer posts 76% jump in quarterly profit but says the economic outlook and consumer sentiment for 2023 are uncertain

Walmart signs are displayed inside a Walmart store in Mexico City, Mexico. File photo: EDGARD GARRIDO/REUTERS

“There’s still a lot of trepidation and uncertainty with the economic outlook,” CFO John David Rainey said. “Balance sheets are continuing to get thinner, savings rate is roughly half of what it was at a pre-pandemic level and we’ve not been in a situation like this where the Fed is raising at the rate that it does.

The consolidated gross profit rate declined 83 basis points in the holiday quarter, primarily due to markdowns and sales of lower-margin products, the company said.

 

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