While lower prices and markdowns are welcome news for shoppers, they mean lower profit for companies. Clothing and general merchandise are more profitable for Walmart than groceries and consumable items.

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Walmart in its announcement Monday cut its profit outlook for the second quarter and the remainder of the year.

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The company's stock fell 8% during early trading Tuesday. Amazon (AMZN), Target (TGT) and other retailers' stocks also dropped following the news from Walmart.

While lower prices and markdowns are welcome news for shoppers, they mean lower profit for companies. Clothing and general merchandise are more profitable for Walmart than groceries and consumable items.

*

Walmart in its announcement Monday cut its profit outlook for the second quarter and the remainder of the year.

*

The company's stock fell 8% during early trading Tuesday. Amazon (AMZN), Target (TGT) and other retailers' stocks also dropped following the news from Walmart.