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Report
Wealthy shoppers weren’t enough to save Walmart’s quarter
The Street
Follow
2/20/2025
Walmart is seeing higher sales thanks to wealthier customers shopping online, but what has investors selling the stock?
Category
🥇
Sports
Transcript
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00:00
Wal-Mart is sounding a cautious tone on the U.S. consumer, and that is sending shivers
00:05
throughout the retail sector.
00:06
The world's largest retailer issued a fiscal year profit forecast that came in below expectations.
00:13
The company's sales growth outlook came in at the low end of forecasts as well.
00:17
The outlook suggests Wal-Mart is expecting a consumer pullback later this year as inflation
00:23
remains relatively high and consumer lending rates not likely to fall much further.
00:29
The key Wal-Mart consumer is already under pressure as high food bills, rising gasoline
00:34
prices and everyday living costs, such as rent, eat away at their budgets.
00:39
And now there's a threat prices could go even higher with broad-based tariffs threatened
00:44
on all imports.
00:46
Even higher-income shoppers have been flocking to Wal-Mart for refuge.
00:49
The retailer said it continues to see more six-figure shoppers come through the doors,
00:54
which is helping to offset any weakness coming from lower-to-middle-income consumers.
01:00
That's a winning formula, at least for the quarter just reported.
01:04
Wal-Mart says the average in-store bill at checkout for the fourth quarter, which includes
01:09
the holiday shopping season, rose 2 percent.
01:12
Online sales in the U.S. jumped 20 percent during the same period.
01:16
Company-wide, sales came in better than expected at nearly $181 billion.
01:22
That's a jump of more than 4 percent from a year ago.
01:25
But as Wal-Mart's forecast suggests, the retailer isn't sure it will see numbers like those
01:31
in the near future.
01:34
Turning to markets now on this Thursday, the Wal-Mart news is weighing on retail stocks
01:37
and that is putting pressure on the broader market.
01:40
Investors are also digesting the latest economic news.
01:43
Weekly jobs claims rose more than expected last week but remain in a tight range, which
01:49
suggests the labor market remains stuck in neutral.
01:53
That'll do it for your daily briefing from the New York Stock Exchange.
01:56
I'm Conway Gittins with the Street.
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