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CNBC reports:

Walmart on Tuesday topped holiday-quarter earnings expectations, as the discounter said it drew budget-conscious shoppers searching for food, gifts and household items at a lower price. But shares slid in premarket trading, after the big-box retailer gave a weaker-than-expected outlook for the year ahead.

The company said it expects same-store sales for Walmart U.S. to rise between 2% and 2.5% excluding fuel, in the fiscal year ahead. That’s below analysts’ expectations for 3% growth, according to StreetAccount. It anticipates adjusted earnings per share to range from $5.90 to $6.05, excluding fuel.

Walmart CFO John David Rainey told CNBC shoppers are still buying fewer discretionary items, as grocery prices remain elevated. He said that factored into Walmart’s predictions for the year ahead. “The consumer is still very pressured,” he said. “And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year…”

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