NEW YORK — Walmart shoppers — much like many Americans — still feel like they’re in a recession.
In the uneven economic recovery, their bills are going up, but their wages are not. While the well-heeled crowd benefits from gains in the stock market, they’re still struggling with a higher payroll tax. And shopping for bargains isn’t a hobby, but a necessity.
For these reasons, the world’s largest retailer on Thursday cut its annual outlook for the second time in three months and offered fourth-quarter guidance that’s below Wall Street’s expectations.
The disappointing forecast shows how vulnerable Walmart — and its customers — are to the ups and downs in the economy. Walmart shoppers are dealing with a 2 percentage point increase in the Social Security payroll tax since Jan. 1.
“Customers feel uncertainty about the economy, government, jobs stability and their need to take care of their families through the holidays,” said Mike Duke, president and CEO of Wal-Mart Stores Inc.
Wal-Mart earned $3.74 billion, or $1.14 per share, in the three months that ended Oct. 31. That compares with $3.64 billion, or $1.08 per share, a year earlier. Net sales rose 1.6 percent to $114.88 billion.
