By Yasin Ebrahim
Investing.com -- Walmart (NYSE:WMT) fell in afterhours trading Monday after the retailer warned on performance after cutting prices to get rid of excess inventory as inflation puts the squeeze on consumer spending, particularly in apparel.
Walmart was down more than 8% afterhours trading.
Net sales growth for the second quarter and full year is expected to be about 7.5% and 4.5%, respectively. That compared to a prior sales growth forecast for the full year of above 5%.
The new guidance was provided in the wake of "pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the U.S. and mix of sales," the company said.
"The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," it added.
Adjusted EPS for Q2 and the full year is expected to decline about 8 to 9% and 11 to 13%, respectively. That company previously guided for EPS to be flat to up slightly.