Hostess Sales Suffer as Walmart Rearranges Shelves

Snack maker’s shares drop after second-quarter earnings fall short of expectations

Hostess Brands Inc.’s sales and profit fell short of expectations in the second quarter as Walmart Stores Inc. devoted less shelf space to the snack maker’s products.

Shares in Hostess fell 18% on Wednesday after the maker of Twinkies and Ding Dongs disclosed its struggles at Walmart, where Hostess earned about one-fifth of its revenue last year.

That...