fbpx

YOUR GUIDE TO STAYING INFORMED IN THE MARKETS

Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

Walmart Lowers Profit Forecast Amid Rising Food & Fuel Costs – $DIA $WMT

By John F. Heerdink, Jr.

Reportedly, Walmart Stores, Inc. (WMT) released first-quarter earnings below expectations and cut its profit outlook due to inflationary pressures, especially in food and fuel. Adjusted profit dropped to $1.30 a share during the first quarter ended in late April below $1.48 analyst estimates.

Retail giant, Walmart which for decades has championed “everyday low prices,” is vying for more customers as inflation pushes shoppers to look harder for bargains. However, the higher costs for merchandise, transportation, and labor pose a growing threat to profitability, imposing questions on Walmart to decide how much of those costs they will pass along to consumers.

For the current quarter, Walmart said it now expects earnings to be “flat to up slightly” compared with a prior view of a low- to mid-single-digit increase. Walmart Chief Executive Officer Doug McMillon informed Walmart will raise prices while looking to stay below its competitors, and will try to limit price hikes on entry-level food items.

“US inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future,” stated Walmart Chief Executive Officer Doug McMillon.

For the full year, Walmart raised its forecast for same-store sales growth at US Walmart stores to about 3.5%, up from a prior view of “slightly above 3%.


Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page


Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

Stay Informed! Stay Competitive! Please join us at Vista Partners, receive our FREE email updates throughout the week, and view our exclusive content and research.

(Read Original Story: Walmart Slides After Cutting Profit Forecast on Rising Costs in Bloomberg)


YOUR GUIDE TO STAYING INFORMED IN THE MARKETS

Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

Connect with us