Walmart Warns High Gas Prices Are Squeezing Consumer Spending

Walmart's finance chief warned that gasoline prices above $4 have a significant impact on consumer spending, causing them to make 'trade-offs.'

Shares of Walmart Inc. (NASDAQ:WMT) fell over 9% after the company's third-quarter profit guidance came in below expectations.

The retailer expects fuel-related costs to run about $2 billion above its original forecast, putting pressure on consumers and affecting sales growth.

Walmart saw a slowdown in customer transactions growth, with an increase of just 1.5% compared to the previous quarter's 3%, while average spending per transaction rose only 1.1%, down from 3.1% last year.