Wal-Mart Cuts Earnings Forecast

Wal-Mart Stores slashed its earnings forecasts after the worst holiday-shopping season in 40 years squeezed retail profit margins, Bloomberg reported Thursday.

The retailer said its fourth-quarter profit will miss its earlier forecasts after sales at stores open at least a year rose 1.7% last month, missing analysts’ estimates.

Profit from continuing operations will be 91 cents to 94 cents a share, down from a November projection of $1.03 to $1.07, Bloomberg said.

Half of consumers spent less this holiday season than in 2007, the ICSC and Goldman Sachs Group said, according to Bloomberg.

Several other major retailers also reported lower sales, including Target Corp., J.C. Penney Co. and Macy’s.

Wal-Mart, the world’s biggest retail chain, is ranked No. 3 on the Transport Topics Private 100 list of the largest U.S. and Canadian private carriers.