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Christmas Early Warning! Walmart Crashes On Disappointing Guidance, Warns That Consumer Spending Is Deteriorating (Jingle Hell?)
Confounded Interest ^ | 11/16/2023 | Anthony B. Sanders

Posted on 11/16/2023 5:36:08 AM PST by Kaiser8408a

Its beginning to look a lot like a BAD Christmas!

We already knew that earnings calls were filled with concerns about a weak Christmas season.

After yesterday’s solid (inventory liquidation driven) earnings from Target, many were hoping for follow through today from the OG, the world’s largest retailer WMT which reported Q3 results at 7:00am ET. Alas, those same long-suffering consumer discretionary investors were in for more disappointment when the retailing giant reported earnings that generally beat on revenue and earnings, and even though it raised its previous guidance, the numbers came in shy of Wall Street estimates which in turn sent its stock tumbling.

Let’s take a closer look at what WMT reported, starting with Q3 historicals:

Adjusted EPS $1.53 vs. $1.50 y/y, just barely beating the (previously lowered) consensus estimate of $1.52 Revenue $160.80 billion, +5.2% y/y, beating the estimate of $159.13 billion (global eCommerce net sales hit $24 billion, reaching 15% of net sales; they were up 15% led by pickup and delivery) Total US comparable sales ex-gas +4.7%, beating the consensus estimate +3.35% Walmart-only US stores comparable sales ex-gas +4.9%, beating consensus estimate +3.46%.

So far so good, and if that was the extent of it the stock would probably be soaring now. However, what the market threw up all over was the company’s disappointing guidance (which was raised but still failed to meet consensus estimates), as well as its cautious tone about the outlook for US shoppers after signs of weakness at the end of October.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
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To: Kaiser8408a

People are too busy struggling to put food on the table, pay exorbitant utility bills and put gas in the car.

They are struggling to keep their head above water in Biden’s economy.


21 posted on 11/16/2023 7:18:50 AM PST by Bon of Babble (You Say You Want a Revolution?)
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To: Liz

Ha! I’m willing to buy her a nice floppy sunhat if Yellen will retire to spend the rest of her days meandering in her garden.


22 posted on 11/16/2023 8:00:33 AM PST by NautiNurse (🇺🇸)
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To: NautiNurse

Awwww, gee.....watta nice person you are.......so generous.


23 posted on 11/16/2023 8:03:32 AM PST by Liz (Women have tremendous power — their femininity, because men can't do without it. Sidney Sheldon)
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To: woodbutcher1963

It’s all in the timing. The morning slots are typically much more efficient. Morning delivery is another good option.


24 posted on 11/16/2023 8:03:36 AM PST by NautiNurse (🇺🇸)
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To: NautiNurse

Yes, that is what a guy in my office said. Go on the way to work in the morning and you will not wait at all.

Live and learn.


25 posted on 11/16/2023 8:07:43 AM PST by woodbutcher1963
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To: Kaiser8408a

So why all the *warnings* to consumers because the store’s profits are tanking.

It doesn’t affect me in the least.

The only warning consumers would care about is if goods were not available. Nobody cares if W-M’s sales are tanking.


26 posted on 11/16/2023 8:49:04 AM PST by metmom (He who testifies to these things says, “Surely I am coming soon.” Amen. Come, Lord Jesus.)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

27 posted on 11/16/2023 11:09:25 AM PST by SunkenCiv (Putin should skip ahead to where he kills himself in the bunker.)
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To: Kaiser8408a

Good time to buy Walmart


28 posted on 11/16/2023 11:26:39 AM PST by Jonny7797
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To: TexasFreeper2009
all the free covid money has been spent, credit card debt maxed out and the bills are coming due.

Yup!

29 posted on 11/16/2023 3:40:51 PM PST by nutmeg (FJB)
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To: woodbutcher1963; NautiNurse
I pulled up just before 5pm. All eight spots were full. There was another four or five cars in line to get in the spots. I told the store I had arrived via the AP and got in line. After about 15 minutes I considered parking out front and going into the store to get my ONE item. I chose to wait in my vehicle. I did not get served for a total of 55 minutes. What a waste of time.

I had a similar experience at the East Windsor, CT Walmart about a year ago. Purchased online a handful of small items that I preferred to have delivered to my home (like Amazon does). For some reason, I couldn't do that online, so I was forced to drive to the damn Walmart to pick up these few items.

Waited and waited in the designated spot, and it wasn't even that busy. The young people bringing out the stuff to the cars were nice, but the service was chaotic and slow.

I'm not a fan of curbside pickup at Walmart, to say the least. Just deliver the stuff to my house!

30 posted on 11/16/2023 3:49:18 PM PST by nutmeg (FJB)
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To: nutmeg

Boy my experience has been just the opposite. Great customer service and they delivered to the car in minutes


31 posted on 11/16/2023 7:03:12 PM PST by Chickensoup (Genocide is here. Leftist extremists are spearheading the Genocide against conservatives. )
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To: sten
why would people buy at walmart when they could easily shop on amazon (with an endless selection) and have it delivered?

Maybe other people don’t shop on Amazon sometimes for the same reason I don’t: because they want to see and touch and the quality of what they’re buying before they put their money down, because half the stuff on Amazon is a nuisance to return, because there’s a problem with Amazon delivery thefts and wrong deliveries, because if you buy in person you never get the item home and find out that the sizing is for an 87-pound Chinese model and is never going to fit Cousin Bertha.

32 posted on 11/17/2023 6:50:48 AM PST by ottbmare (the OTTB mare)
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To: Chickensoup
That's good. I'm sure the service varies by location. Maybe I just had bad luck that day... who knows?

I will say the young people delivering the stuff to cars were very upbeat and good-natured. They didn't seem to hate their job - kind of rare to see that these days, especially in the northeast. They appeared to be overwhelmed though.

33 posted on 11/17/2023 11:05:00 AM PST by nutmeg (FJB)
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