Walmart’s shares fell by more than 6% Tuesday in premarket trading after it said it anticipates a decline in FYEPS of 1%.

According to the company’s Q1 adjusted earnings per share, $1.30 was reported, a decrease of $1.69 from the previous year. This misses the consensus estimate of $1.48 per shares. The company’s revenue was $141.57 Billion, an increase of 2.4% over the previous year and higher than the analysts consensus estimate of $139.09B.

Analysts expected an increase of 2.26% in U.S. sales comparables, but this was despite the fact that U.S. comparables sales were up 4% excluding gasoline expenses. Comparable sales for Walmart stores in America excluding gasoline increased by 3% during the same period. This was more than the 2% expected. The 2-year comparable sales stack of same-stores rose by 9% versus the analyst forecast of 7.66%.

Walmart said results “reflect the unusual environment” and characterized the bottom-line results as “unexpected.”

According to the company, FY earnings per share will decrease by approximately 1% compared with its previous estimate of a mid-single-digits rise.

The company also anticipates a Walmart-only U.S. sales growth of 3.5%. It expects that Q2 earnings will remain flat to grow quickly, down from the previous forecast of a low- to mid-single-digit increase.

Goldman Sachs analyst Kate McShane expects the WMT stock “to trade lower today given the 1Q miss, along with lowered FY22 guidance.”

Stifel analyst Mark Astrachan said WMT delivered “disappointing” results.

“That said, solid comp growth and revised guidance reflects low-double-digit U.S. grocery growth, in part driven by inflation, though Walmart is gaining share. General merchandise weakness and comp decline low-double-digits reflect softness in discretionary category, which is a result of the prior year’s stimulus. Cost inflation is unsurprising, though the magnitude is greater-than-anticipated, and is not likely to abate over the medium-term given revised guidance. Although we anticipate more information on the earnings call, we think that cost pressure indicates Walmart will likely continue to grow sales before volumes. This would be reflected in pricing. We would view this as generally favorable for other retailers and staples companies, as it signals a generally benign promotional environment,” Astrachan wrote in a client note.

By Senad Karaahmetovic