The retail sector is down this morning following Walmart, Inc’s WMT guidance cut.
Why Is It Moving?
Shares of Target Corporation TGT and Kohl's Corporation KSS are falling following Walmart’s announcement.
Walmart cut its full-year 2023 earnings guidance amid rising inflation, which has impacted consumers spending patterns. This has led to markdowns in inventory, particularly in the apparel segment.
Adjusted earnings per share for the second quarter and full year are expected to decline around 8 to 9%... read more.
As a result, the retail sector is down today in sympathy. It seems that investors are concerned rising inflation could have similar impacts on other names in the space. With growing inflation, consumers may save more to pay for the rising cost of essential goods and spend less excess cash on other items.
Price Action: Kohl’s is down 5.39% and Target is down 4.63% during today’s pre market session.
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