Walmart Inc. (NYSE:WMT) shares dropped more than 7% on Tuesday following the company’s preannounced Q2 results and 2023 guidance cut, reflecting even greater than planned mix/margin pressures.

Q2 and 2023 consolidated revenue growth are expected to be approximately 7.5% and 4.5%, respectively. Operating income is expected to decrease 13-14% and 11-13% for Q2 and 2023, respectively. Q2 and 2023 operating margins are expected to be about 4.2% and 3.8%-3.9%, respectively.

Adjusted EPS is expected to drop around 8-9% and 11-13% for Q2 and 2023, respectively. The reduction was primarily driven by pricing actions to improve inventory at Walmart and Sam's Club in the US and the mix of sales.