October Festival Guide

Wal-Mart: Food stamp cuts to hit profits

Food Stamps

NEW YORK (CNNMoney) — Wal-Mart Stores warned Friday that cuts to the nation’s food stamps program late last year will hurt its bottom line.

The cut in food stamps went into effect Nov. 1. Food stamps had been increased during the height of the recession, but that expansion expired without Congressional action.

The expiration of the program saved the government $5 billion.

More cuts in food stamp funding could be on the way. A bipartisan deal on a new farm bill reached earlier this week could trim $90 a month in benefits for 850,000 food stamp recipients, saving the government nearly $1 billion a year.

The nation’s largest retailer also said bad weather was affecting its financial performance. Additionally, the company said it will also have to take a charge related to previously-announced plans to cut 2,300 jobs and close some of its Sam’s Club wholesale stores. The warnings mean the company will report a drop in earnings in the quarter that ends Friday.

A year ago, the company reported it was hit by the expiration of a temporary cut in payroll taxes, which it said caused sales to fall in the first quarter.

Shares of Wal-Mart fell in early trading.

The-CNN-Wire
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4 comments

  • manalishi

    Should the inevitable day come that the government really cuts into food stamp programs to save itself, the dems are done. I’m thinking immigration reform/amnesty could be just enough to break the already fragile program,,,by design.

    • Dustin Cavanaugh

      Ah so you consider yourself a republican. A proven sheep. No wonder your words reek of ignorance. No intelligent person can conform to a label as that by default creates a closed mind.

  • Dustin Cavanaugh

    Went from 96 dollars to 70 dollars. Cut them again and I will start stealing and I won’t be the only one. It will also be morally justified. I will steal from you rich idiots as well. It’s stupid to steal from the poor when the rich are the problem.

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