Walmart’s stock plummeted after the company delivered disappointing quarterly earnings results. The retail giant expects its profit to decline for the first time in three years, citing increasing pressure on margins from strong sales of weight-loss drugs and groceries.
In a statement, Walmart attributed the warning to a “generally stable consumer” with continued challenges from its global product mix and formats. This suggests that tariffs may not be as significant a factor as previously thought, at least for now.
The decline in quarterly profit marks a notable shift in the company’s fortunes, which have been fueled by steady sales growth and cost-cutting efforts over the past few years. However, the warning highlights the challenges faced by Walmart in maintaining its profitability amidst intense competition and changing consumer preferences.
Source: https://www.marketwatch.com/story/walmarts-stock-dives-as-disappointing-outlook-offsets-an-earnings-beat-3215a1e8