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Wal-Mart: Slashed orders report 'completely false'

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Amid an inventory backlog, Wal-Mart Stores is cutting U.S. orders, but not across the board, according to a Bloomberg report on Wednesday that the discount giant called "misleading."

Wal-Mart shares rebounded from a drop of almost three percent after Wal-Mart's response.

Wal-Mart spokesperson David Tovar told CNBC "the entire story is misleading" and the claim that Wal-Mart is cutting orders because inventories were piling up is "completely false." He added that the company has hundreds of inventory categories and that it is constantly managing inventory levels based on consumer demand in different markets.

(Read more: Wal-Mart's holiday hiring plans)

Bloomberg reported that an ordering manager at its Bentonville, Ark., headquarters described the pullback to a supplier, who said other suppliers got similar messages.

"We are looking at reducing inventory for Q3 and Q4," said the email, Bloomberg reported.

Following the report, the company's stock shares traded lower but later pared most of the losses. (Click here to track the company's shares.) Shares of Costco Wholesale and Target also fell after the report.

During the most recently ended quarter, Wal-Mart said its inventory increased 6.9 percent primarily to softer-than-foreseen sales trends, the delay in summer weather and timing shifts in the receipt of merchandise for back to school and the upcoming holidays.

(Read more: Wal-Mart launches a discount offer for new iPhones)

In mid-August, the company's CFO and Executive Vice President Charles Holley said its "expectations for the back half of the year are through the lens of cautious consumer spending," adding that it has an aggressive plan to go after sales and invest in price.

—By CNBC's Katie Little and Courtney Reagan

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