Walmart cuts profit outlook on inflation impact

NEW YORK: Walmart Inc. on Monday (Tuesday in Manila) slashed its profit outlook for the second quarter and the full year, saying rising food and gas prices are forcing shoppers to cut back on discretionary items, particularly clothing, that carry higher profit margins.

That behavior is forcing the nation's largest retailer, based in Bentonville, Arkansas, to step up discounts on general merchandise items like home furnishings and electronics to move inventory.