Walmart misses earnings estimates as inflation eats up profits

Walmart has reported mixed quarterly results as earnings fell short of estimates due to rising costs for food, fuel and wages weighing on profitability.

Sales were strong even as consumer spending remained solid.

Walmart reported its revenue at $141.57 billion. Wall Street had expected $139.09 billion.

Adjusted earnings per share were $1.30, falling short of the expected $1.48.

Walmart, the largest retailer in the U.S., has seen sales growth decelerate from a peak rate during the height of the pandemic domestically, when a surge in pantry-stocking and stimulus checks helped boost results.

Still, the company has maintained revenue growth as demand remained resilient for the company’s array of products, even as consumer prices have climbed across the country.

However, rising prices have weighed on profitability for Walmart, as earnings fell short of estimates for the company’s three-month period that ended April 30.