Walmart has recorded an operating income decline of 23 per cent to £5.3 billion in the first quarter of the year.
The retailer said the profit decline was driven by $0.3 billion in divestitures, as well as rising inflation levels in the US.
The company’s US comp sales grew 3 per cent, while its international sales dropped by 13 per cent.
Its international net sales decreased by $3.5 billion to £23.8 billion.
Walmart sold its majority stake in Asda in 2020, which was taken over by the Issa bothers and UK private equity firm TDR Capital.
According to a report from Reuters, shares at the retailer dropped by almost 10 per cent in morning trading following publication of its latest financial figures.
“Bottomline results were unexpected and reflect the unusual environment,” said Doug McMillion, president and chief executive, Walmart. “US inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected.”
Supplying demand: how fashion retailers can meet the needs of customers and still be sustainable
The fashion industry is no stranger to breaking the mould and setting trends, but the pursuit of style can come at a huge cost to the environment.
New legislation, such as the European Union's Ecodesign for Sustainable Products Regulation, will set mandatory minimums for the inclusion of recycled fibres in textiles, making them longer-lasting and easier to repair.
New legislation, such as the European Union's Ecodesign for Sustainable Products Regulation, will set mandatory minimums for the inclusion of recycled fibres in textiles, making them longer-lasting and easier to repair.
The Very Group
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