NEW YORK, May 21 (Xinhua) -- U.S. retailer Walmart issued a weaker-than-expected financial outlook on Thursday, raising concerns about the health of U.S. consumption as surging gasoline prices and broader inflation strain household budgets.
For its fiscal first quarter ended April 30, Walmart reported revenue of 177.8 billion U.S. dollars, a 7.3-percent increase that topped Wall Street expectations of around 174.8 billion dollars. Adjusted earnings came in at 66 cents per share, matching analyst estimates.
However, the retail giant's forward-looking guidance fell short of market expectations. Walmart expects full-year adjusted earnings to be between 2.75 dollars and 2.85 dollars per share, below the 2.91-dollar consensus estimate. For the current second quarter, the company projected adjusted earnings of 72 to 74 cents per share, missing expectations of 75 cents. Net sales are anticipated to climb 4 percent to 5 percent for the quarter and 3.5 percent to 4.5 percent for the full year.
The quarterly report from Walmart points to a consumer base under mounting pressure, as the current economic squeeze is worsened by a surge in global energy prices stemming from the Middle East conflict. In April, U.S. inflation jumped to 3.8 percent, its highest level in nearly three years.
Consumer price growth outpaced wage growth for the first time since 2003, April data showed. Economists warned that the full economic impact of the geopolitical conflict has yet to be fully absorbed by the U.S. domestic economy.
