BENTONVILLE, Ark. (KNWA/KFTA) — On July 25, Walmart revised its outlook for profits for the second quarter and the full year, adjusting the profit outlook downward “primarily due to pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the U.S.”

According to a press release from the Bentonville-based retailer, food inflation is “double digits and higher than at the end of Q1,” and this is “affecting customers’ ability to spend on general merchandise categories and requiring more markdowns to move through the inventory, particularly apparel.” The release states that during the quarter, the company made progress in reducing inventory, managing prices to reflect certain supply chain costs and inflation, and reducing storage costs associated with a backlog of shipping containers.

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars. We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.” said Doug McMillon, Walmart Inc. president and chief executive officer.

The press release states that operating income for the second quarter and full year are expected to decline 13-14% and 11-13%, respectively, while adjusted earnings per share for the second quarter and full year are expected to decline around 8-9% and 11-13%, respectively.