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.
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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.