On November 18, 2024, Walmart is set to release its latest quarterly revenue report, which will offer insights into consumer health and economic conditions in the U.S. Investors are particularly focused on whether recent weaker retail sales in January are indicative of a larger trend, as Walmart is a key barometer for the retail industry, especially given its status as the nation’s leading grocery store. Analysts expect Walmart to report earnings per share of 64 cents and revenue of approximately $180 billion.
January saw a 0.9% decline in retail sales, raising concerns among investors, while some restaurants also reported disappointing sales despite improvements in the fourth quarter. The National Retail Federation reported a 3.8% year-on-year sales increase for the holiday season, suggesting a return to pre-pandemic levels.
Walmart has seen continued growth in online sales and is attracting higher-income customers, which contributed to a 75% market share increase in households earning over $100,000. Analysts, like Morgan Stanley’s Simeon Gutman, have raised Walmart’s stock price target, noting the potential for profitability in its advertising and membership programs. Over the past year, Walmart’s stock has surged by 83%, outperforming the S&P 500.
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