Wal-Mart Gives Tepid Outlook

  • Third-quarter forecast comes in below many analyst estimates
  • Retailer has been spending heavily to catch up with Amazon

Wal-Mart reported second-quarter results that narrowly beat expectations and provided a third-quarter forecast that reduced profit expectations. Bloomberg Intelligence's Jen Bartashus reports on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)

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Wal-Mart Stores Inc., racing to fend off Amazon.com Inc. and a fresh attack from European grocery discounters, gave a lukewarm earnings forecast for the third quarter, a sign that heavy spending aimed at maintaining its edge is taking a toll.

The shares slid Thursday after the retail giant said Bloomberg Terminalthat profit will be 90 cents to 98 cents a share in the period. Analysts had projected a number at the top of that range.