Walmart (WMT) is plunging in afterhours.

All after the retailer cut its profit outlook, saying inflation is causing shoppers to spend more on necessities, and less on just about everything else.

All thanks to inflation, which was never transitory.

The retailer now expects for EPS for the second quarter, and full year to fall about 8% to 9%, and 11% to 13%, respectively.  That’s a massive shift from the company’s initial forecast for flat to up slightly for the second quarter, and for the full-year numbers to drop by about 1%.

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars,” CEO Doug McMillon said in a news release.

In addition, according to CNBC, “The sharp change in consumer spending could jeopardize other aspects of Walmart’s strategy, too. The company wants grow its subscription service, Walmart+, but that could be a tougher sell if Americans scour their bills for fees to cut.”

Tuesday could get ugly on this news.