Target Corp TGT shares are trading lower in Monday's after-hours session in sympathy with Walmart Inc WMT after the retailer cut guidance for the second quarter and full fiscal year.
Walmart said it revised its outlook as a result of pricing actions aimed to improve inventory levels at Walmart and Sam's Club in the U.S.
"The increasing levels of food and fuel inflation are affecting how customers spend, and while we've made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," said Doug McMillon, president and CEO of Walmart.
Consolidated net sales growth for the second quarter is expected to be about 7.5%, while full-year growth is expected to be about 4.5%. Operating income is expected to decline between 13% and 14% in the second quarter and between 11% and 13% for the full year.
Walmart said it expects adjusted earnings to decline between 8% and 9% in the second quarter and between 11% and 13% for the full year. The company maintained its expectations for Walmart U.S. comparable sales growth, excluding fuel, of about 3% in the second half of the year.
See Also: After-Hours Alert: Why Walmart Stock Is Falling
Target is a leading American general merchandise retailer, offering a variety of products across several categories.
TGT Price Action: Target has a 52-week high of $254.87 and a 52-week low of $137.16.
The stock was down 5.67% in after hours at $148.50 at press time, according to data from Benzinga Pro.
Photo: Mike Mozart from Flickr.
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