Walmart’s Catch-Up Game With Amazon Is Crushing Its Bottom Line

  • With expenses piling up, online strategy draws concerns
  • Transportation, price cuts also weigh on profitability gauge
Walmart Outlook Disappoints as Online Growth Decelerates
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Walmart Inc.’s battle with Amazon.com Inc. is hitting its bottom line like never before -- and testing the patience of investors.

The retail giant’s push to expand online operations and cut prices contributed to a record-low operating margin last quarter, according to data compiled by Bloomberg. The profit measure narrowed to 3.3 percent, sparking concerns that Walmart’s long-enviable financial cushion is under pressure.