Posted on 07/25/2022 5:37:31 PM PDT by Hojczyk
Walmart just gave all the recession mongers on Wall Street a huge adrenaline shot in the collective arm.
The world's largest retailer slashed its second quarter and full-year profit outlooks late Monday owing to rampant inflation and a consumer retrenchment.
Here's where Walmart stands compared to its guidance offered in mid-May:
Second Quarter Net sales Growth: +7.5% (+5% previously)
Second Quarter Operating Income: -13% to -14% (flat to up slightly)
Second Quarter EPS: -8% to -9% (flat to up slightly)
Full Year EPS: -11% to -13% (-1%)
Walmart shares plunged 9% in after-hours trading.
“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," Walmart CEO Doug McMillon in a statement. "We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.”
Walmart declined to make CEO Doug McMillon or CFO John Rainey available for an interview.
The Bentonville Bruiser now joins a growing list of household name retailers seeing their profits under siege from brutal inflation in transportation and merchandise with little room to pass on those higher costs to increasingly cash-strapped shoppers.
(Excerpt) Read more at finance.yahoo.com ...
A covy #2 climate change will shut everyone else down.
Tighten your seatbelts cause it’s going to be a bumpy ride. Layoffs and house foreclosures coming. All of it unnecessary and due to garbage politicians.
I imagine Walmart cojld.stand a recession better than a high end retailer.
‘Man Made’ and
Self inflicted.
.
Obiden, you hear This?
My neighbor is an agronomist and runs a consulting biz.
He travels all over the US.
Told me that $6/gallon diesel is making the shipment of some crops totally unprofitable. So you’ll see stuff rot rather than ship.
People realized they can live without the junk they have been buying, I see a trend...
No matter how the WH tries to define it we are already in a recession plus stagflation
Oh but but Orange man tweeted mean tweets!
Be American ! Buy American!
Walmart used to have signs with blue arrows and they said “Watch for falling prices.”
Now they’re for their stock prices.
And a Fed that has been “stimulating” the economy for 14 years.
It’s as if they used a defibrillator repeatedly on a heart patient until he finally died.
Seeing it around here. Tech companies are laying off workers. At my daughters' companies they started laying off sales and support crews, keeping their core employees that keep business going. Been going to open houses with one daughter seeking to buy a home, and sales agents are telling us everything slowed down and they aren't getting offers on homes like they were a few months ago - buyers evaporated to the point where they are reducing asking prices. We told our daughter to hold off buying until winter to see if the housing market is collapsing because she'll be able to buy at a lower price.
I don't think things will improve until Biden expires.
Biden: I'm a devout, practicing Catholic myself. But I'm not a bigot about other people.
Correct. they are trying to spin this to say prices are coming down. Inflation is over.
Fact is everyone is broke and can’t afford to buy anything so retailers are left hurting and trying to dump merchandise.
I have tried to stop shopping at walmart and started shopping smaller local stores.My walmart has nothing but empty shelves anyway
Our Walmart seems stuffed...small town
Lower sales because they jacked prices up much higher than they needed to.
At one of the local Walmarts. a sign by the rest rooms has the current stock prices, and a notice to the employees (”associates”) that the price is THEIR doing.
So, I guess the Walmart employees performed poorly that day.
I love the “recession mongers” angle. The only people who want this are the ones causing it, while claiming it is not happening.
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