Walmart Chief Financial Officer Brett Biggs called Q1 “one of the most challenging periods yet” in a disruptive environment marked by inflation and supply chain challenges. For the year, the retailer now expects a small decline in operating income compared to the 3% growth it forecasted earlier in the year.
Part of Walmart’s challenge is timing. Gasoline costs went through some rapid upward spasms during Q1. Costs rose more quickly than Walmart hiked its prices, but executives signaled they planned to raise prices on consumers where they could to recoup profits.