Big Retailers Shares Tank, Profit Margins Hit
The world’s largest retailer Walmart’s quarterly profits fell well below Wall Street’s expectations, despite sales being higher than expected.
Walmart made US$141.57 billion in revenue for the first three months of the year, beating analyst estimates of $138.94 billion.
Net income fell to $2.05 billion, down from $2.73 billion the year prior, with adjusted earnings per share at $1.30, compared to Wall Street’s estimations of $1.48.
Higher product costs, supply chain issues, and higher employee costs were to blame for the fall in fortune.
Shares dropped more than 9% in early trading on Tuesday.