Walmart Illustration 143168216 © Alexey Novikov

CNBC reports:

Walmart on Tuesday reported quarterly earnings that missed Wall Street’s expectations by a wide margin, as the nation’s largest retailer felt pressure from rising fuel costs and higher levels of inventory.

Shares were down nearly 9% early Tuesday.

Walmart is a much-watched company as investors and economists look for clues about how the American consumer is weathering inflation.

The discounter’s bottom line results for the quarter “were unexpected and reflect the unusual environment,” CEO Doug McMillon said in a release Tuesday morning. Inflation in the U.S. is at a nearly four-decade high. The consumer price index, a broad measure of prices for goods and services, increased 8.3% in April compared with a year ago, according to the Bureau of Labor Statistics.

The significant jump in fuel prices, elevated labor costs and aggressive inventory levels weighed on the company, Chief Financial Officer Brett Biggs told CNBC in an interview. He said some merchandise arrived late and other items, such as grills, plants and pool chemicals, didn’t sell due to “unseasonably cool weather in the U.S.” 

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Seeking Alpha: “Walmart Non-GAAP EPS of $1.30 misses by $0.18, revenue of $141.6B beats by $3.55B“.

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