Walmart earnings and outlook fall short as holiday season disappoints


A shopper pushes 2 carts full of Morf Boards, a popular kids toy, through a Walmart in Phoenix, Arizona.

Dominic Valente | The Washington Post | Getty Images

Walmart is set to report earnings for the holiday quarter before the bell on Tuesday, the same day it will be holding a highly anticipated meeting with investors in New York.

Here’s what analysts are expecting for Walmart’s fiscal fourth quarter, based on Refinitiv data:

  • Earnings per share: $1.43
  • Revenue: $142.49 billion
  • Same-store sales: up 2.3% in the U.S.

Wall Street is eager to see how Walmart fared this holiday season.

The big-box company didn’t release its holiday results, but rival Target‘s holiday sales results disappointed, with Target citing weakness in toys, leading many to believe Walmart’s results would be similarly less upbeat.

Gordon Haskett analyst Chuck Grom last week lowered his expectations for Walmart’s fourth-quarter same-store sales, saying, in part, Walmart was likely impacted by the shorter holiday season. He is now calling for growth of roughly 2%.

As Walmart’s grocery business has been on fire, its e-commerce operations have been more controversial. And some of its bets have failed.

Just last week, Walmart said it would be discontinuing its text-to-order e-commerce service, known as Jetblack. It launched the business in New York back in 2018. But it hasn’t been able to make money on the project, nor grow the audience at scale, according to reporting by The Wall Street Journal. Instead, Walmart said it plans to incorporate some of Jetblack’s technology into its own business.

It sold ModCloth, a clothing start-up it had previously acquired in a bid to grow the reach of its audience, last year. Another one of its acquisitions, Bonobos, laid off employees last year. And Bonobos founder Andy Dunn late last year announced his departure from Walmart. Dunn had been tasked with helping the head of Walmart’s U.S. e-commerce business, Marc Lore, acquire digital brands.

There has also been ample shake-up among Walmart’s executive ranks of late.

Last month, it said its chief merchant Steve Bratspies would be departing. That news came after the chief merchant for Walmart’s U.S. e-commerce business, Ashley Buchanan, left in December to become CEO of crafts retailer Michael’s. And last summer, Walmart integrated many positions into its own business, eliminating the president role.

Walmart has said it is on track to report e-commerce sales growth of 35% for the year. During the third quarter, online sales were up 41%.

Walmart shares are up about 19% over the past 12 months. It has a market value of roughly $332.7 billion.

This is breaking news. Please check back for updates.

Products You May Like

Articles You May Like

Dr. Scott Gottlieb says he thinks the worst of the U.S. coronavirus epidemic ‘will be over by January’
Dr. Anthony Fauci says U.S. coronavirus outbreak is ‘going to be very disturbing,’ could top 100,000 new cases a day
Space startup Momentus provides ‘last mile delivery’ for satellites launched on any rocket
Here’s what checking into a hotel is like in the age of Covid-19
If you miss travel, road trips could be your key to safer summer getaways

Leave a Reply

Your email address will not be published. Required fields are marked *