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Wal-Mart Lowers Forecast as Pay Raises, Currency Take Toll

Bloomberg business news

Wal-Mart's Woes: Wages, Currencies, Competition

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Wal-Mart Stores Inc., the world’s biggest retailer, cut its annual earnings forecast for the year, hurt by currency fluctuations and a high-profile pay bump for U.S. employees.

The company now expects profit of $4.40 to $4.70 a share this fiscal year, which runs through January, according to a statement on Tuesday. Wal-Mart had previously forecast earnings of as much as $5.05 a share. The outlook sent the shares on their biggest one-day decline in almost three months.