The largest US retailer Walmart expects worse business given the high inflation and the strong dollar. In the current financial year, the group expects sales to be impacted by billions of euros due to exchange rate effects.
The shopping giant announced on Monday after the market closed that rising prices for urgently needed goods such as groceries and petrol dampened customers’ willingness to spend on other products. In order to continue to reduce inventories, especially for clothing, stronger discounts are necessary.
Walmart therefore expects operating profit in the current second fiscal quarter to fall by 13 to 14 percent compared to the previous year. In the financial year as a whole, earnings are likely to fall by 11 to 13 percent. The stock responded after hours with a price slump of 8 percent. Walmart is also groaning under the strong dollar. In the current financial year, the group expects sales to be impacted by billions of euros due to exchange rate effects.
