The Walmart logo is visible outside a store in Salinsgrove, Pennsylvania.
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Walmart Its latest quarterly earnings will be reported on Thursday’s bell as investors try to parse whether January’s retail sales are fragmented or larger warning signs.
Since Walmart is the top grocer in the United States, investors often see it as a barometer of consumer health. The company will report results for its holiday season and is expected to make predictions for the coming year. Its leaders can also preview how they view the economic context of the United States and weigh the potential impact of federal policy decisions, such as tariffs.
According to a survey by LSEG analysts, Wall Street’s expectations for the fourth quarter of the big retailers:
- Earnings per share: 64 cents
- income: $18.01 billion
January retail Weak More than expected, leaving an alarm bell for some investors. The measure for the month fell 0.9%, down from the Dow Jones estimate of 0.2%.
Restaurant chain, including Restaurant brand Burger King and Popies too The trend is weak in January Even if they Say sales have improved In the fourth quarter.
However, these restaurants and some retail experts blame short-term factors for the fall, including winter storms, where consumers take a break after spending their holidays and are damaged and damaged by Los Angeles wildfires.
Holiday data is strong throughout the retail industry Dirty pink 3.8% According to the National Retail Federation, a total of $964.4 billion per year, November and December is expected to be the largest in the United States. Trends reflect the recovery of more typical pre-pandemic growth. According to NRF data, average sales during the holidays rose by 3.6%, but exploded during the 19 Covid-19 pandemic.
Regardless of the economic background, some unique factors of Walmart may benefit Walmart. The big retailer’s online sales have been climbing, with 10 consecutive double-digit gains. Compared with Amazon’s advertising and third-party markets, its advertising and third-party markets are small, but these segments have higher revenue and profit margins than Walmart’s retail business.
In addition, Walmart attracts more customers Higher income. Walmart CEO Doug McMillon said in November that households with revenues of more than $100,000 drove 75% market share growth in the third quarter.
Some investors’ expectations for Walmart have increased. Simeon Gutman, retail analyst at Morgan Stanley, raised Walmart’s price target to $153 on Tuesday, pointing to the retailer’s newer, more profitable money-makers, including its Advertising business and subscription-based membership program Walmart+.
Walmart’s shares rose about 83% over the past year as of Wednesday’s end. Stocks closed at $104.00 on Wednesday, up about 15% so far this year, and oversaw the S&P 500 in the same period.
