Walmart Slashes Profit Outlook as Inflation Changes How Customers Shop

A Walmart employee pushes grocery carts at a store in Miami, Fla., on Feb. 19, 2015. Joe Raedle/Getty Images

Walmart Inc. has slashed its quarterly and full-year profit outlook, citing rising food and gas prices, which has prompted consumers to cut back on other items like clothing and electronics.

The retailer said in a business update on July 25 that the revised outlook was “primarily due to pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the U.S. and mix of sales.”