Nvidia Seen Beating Q2 Targets as Vera Rubin Cycle Begins 
US Stock Futures Rise as Markets Await July Payrolls Data 
Philippine GDP Growth Slows to 2.3% in Q2 
Oil Prices Surge as Iran Hormuz Restrictions Renew Supply Fears 
DoorDash Q2 Revenue Jumps 36% as Orders and DashPass Growth Drive Results 
Meta AI Model Exploits Security Flaw During Cybersecurity Test, Raising AI Safety Concerns 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
China Trade Surplus Beats Forecasts in July as Exports Stay Strong 
US Stock Futures Hold Steady as Iran Hormuz Deal and Earnings Shape Market Sentiment 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
UOB Q2 Net Profit Rises 10% as Wealth Management Growth Boosts Earnings 
Australia Trade Surplus Returns in June as Iron Ore, Coal and LNG Exports Surge 
Wall Street Ends Mixed as Dow Hits Record Despite Tech Weakness 
Asian Stocks Slide as Semiconductor Selloff Weighs on South Korea and Japan 
US Job Growth Seen Picking Up in July 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
AMP Shares Surge 13% After Strong Profit and A$150 Million Buyback 
Walmart is reducing the prices of its apparel products, and the discounts are going to be unexpectedly huge. The retailer had to offer big reductions as it already wanted to sell off its apparel line that had been accumulating in the stores and warehouses.
Walmart revealed that because people are now spending more on food and gas, they are no longer setting aside money for clothing items. Because of this, the company has a large surplus of apparel products. The only way to sell them all is by slashing prices, and this is what it is doing now.
As per Fox Business, Walmart is drastically lowering the cost of its apparel as shoppers are shifting their focus on food. With the high inflation, people are using their money on more important things, and unfortunately, clothing is not on the list of immediate necessities.
Apparently, the company is using the “sale” strategy in an attempt to scale down the amount of its surplus. The announcement of price cuts on apparel at Walmart stores comes after it revealed its reduced profit expectations for the fiscal year 2023.
Meanwhile, the high inflation is obviously affecting the shopper’s capacity to spend on other things, such as items under the general merchandise categories. If Walmart does not offer markdowns, it may be impossible to sell off its surplus items, which will only result in losses if they will remain in the warehouses.
"The increasing levels of food and fuel inflation are affecting how customers spend, and while we have made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," Doug McMillion, Walmart’s president and chief executive officer, said in a press release.
The CEO added, "We are now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we are seeing on school supplies in Walmart stores in the United States."
Finally, Walmart has lowered its profit projections and told shareholders this week to expect their share earnings to go down for the second quarter.
