Walmart slashed its earnings outlook for the second time this year, causing the family fortune to fall.
The family-controlled retailer's shares fell 7.6% in New York after it said adjusted earnings per share will decline as much as 13% this year as US shoppers rein in spending on big-ticket items. In February, the company predicted a modest increase in earnings per share, but two months later it said they would only decline by 1%.
The business was built around a discount culture that helped buoy its stock during recessions. Walmart cited the cost of reducing merchandise inventories as the reason for changing its outlook.
The three surviving children, Alice, Jim and Rob, have a stake in the business. Since the beginning of the year, their net worth has fallen by almost 10%.
The shares of other retailers fell as well. The company's decision to expand quickly after the Covid-19 epidemic didn't work out. The company said it would cut 10% of its workforce.
Tuesday's decline shaved $383 million from the net worth of the 41-year-old co- founder of the company. The shares of the Canadian company have plummeted this year.
The Walmart stake is owned by various trusts, and stock sales have increased recently. The company unloaded $6.2 billion in shares last year in order to keep the family's stake under 50%.
They have enough funds for acquisitions thanks to those sales and investments in US stocks. A group led by Rob Walton agreed to buy the Denver Broncos for a record amount of money. The deal needs to be approved by the finance committee and league ownership.
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