Zincwarrior
Diamond Member
Walmart's recent financial performance was impacted by higher gas prices. I am sure it will be fine.
Walmart issues worse-than-expected outlook as high gas prices hit shoppers
www.cnbc.com
Key Points
Walmart issued a worse-than-expected financial outlook amid soaring gas prices.
Finance chief John David Rainey said high tax returns may have muted some of the impact high gas prices had on shoppers in the first quarter, indicating consumer pressures could rise in the current quarter
The big-box retailer issued fiscal first-quarter results that beat Wall Street’s expectations on the top line but were only in line on the bottom.
Walmart issued a worse-than-expected financial outlook on Thursday as it reported fiscal first-quarter results, raising questions about the health of the U.S. consumer as high gas prices strain shopper budgets.
The mega retailer stood by its fiscal 2027 outlook, which disappointed investors last quarter when it was issued. The retailer said it’s expecting adjusted earnings per share to be between $2.75 and $2.85, lower than expectations of $2.91, according to LSEG. Walmart said it anticipates net sales will rise between 3.5% and 4.5% for the year.
Walmart also issued its outlook for its current quarter, which came in light of expectations, as well. It expects adjusted earnings per share will be between 72 cents and 74 cents, missing expectations of 75 cents. Walmart anticipates net sales will climb 4% to 5% for the quarter.
Walmart’s weaker-than-expected outlook comes as the largest U.S. retailer and its peers post relatively strong sales for the first quarter. The company’s revenue rose 7% in the first quarter, beating estimates, and same-store sales climbed 4.1%, in line with expectations, as the value player continues to see gains in its e-commerce business and with higher-income shoppers.
So far this earnings season, other major companies have also said consumer spending has held up in the face of higher gas prices and growing worries about the state of the economy. But that resilience also came amid higher tax returns, which Target said on Wednesday may have fueled some of the growth it saw during the first quarter.
In an interview with CNBC, Walmart finance chief John David Rainey also said consumers may feel more strain as the effect of tax returns goes away in the second quarter.
“I think higher tax returns muted some of the pressure related to higher fuel prices and as we’re in a period of time right now where those tax refunds are largely not coming in, I think consumers are going to feel more of that pressure from higher fuel prices,” said Rainey. “It’s something that we’re keeping a close eye on, but that expectation is built into our guidance for the second quarter.”
Walmart issues worse-than-expected outlook as high gas prices hit shoppers
Walmart issues worse-than-expected outlook as high gas prices hit shoppers
Walmart's CFO, John David Rainey, said higher tax returns helped offset the effect of elevated gas prices in the first quarter.
www.cnbc.com
Key Points
Walmart issued a worse-than-expected financial outlook amid soaring gas prices.
Finance chief John David Rainey said high tax returns may have muted some of the impact high gas prices had on shoppers in the first quarter, indicating consumer pressures could rise in the current quarter
The big-box retailer issued fiscal first-quarter results that beat Wall Street’s expectations on the top line but were only in line on the bottom.
Walmart issued a worse-than-expected financial outlook on Thursday as it reported fiscal first-quarter results, raising questions about the health of the U.S. consumer as high gas prices strain shopper budgets.
The mega retailer stood by its fiscal 2027 outlook, which disappointed investors last quarter when it was issued. The retailer said it’s expecting adjusted earnings per share to be between $2.75 and $2.85, lower than expectations of $2.91, according to LSEG. Walmart said it anticipates net sales will rise between 3.5% and 4.5% for the year.
Walmart also issued its outlook for its current quarter, which came in light of expectations, as well. It expects adjusted earnings per share will be between 72 cents and 74 cents, missing expectations of 75 cents. Walmart anticipates net sales will climb 4% to 5% for the quarter.
Walmart’s weaker-than-expected outlook comes as the largest U.S. retailer and its peers post relatively strong sales for the first quarter. The company’s revenue rose 7% in the first quarter, beating estimates, and same-store sales climbed 4.1%, in line with expectations, as the value player continues to see gains in its e-commerce business and with higher-income shoppers.
So far this earnings season, other major companies have also said consumer spending has held up in the face of higher gas prices and growing worries about the state of the economy. But that resilience also came amid higher tax returns, which Target said on Wednesday may have fueled some of the growth it saw during the first quarter.
In an interview with CNBC, Walmart finance chief John David Rainey also said consumers may feel more strain as the effect of tax returns goes away in the second quarter.
“I think higher tax returns muted some of the pressure related to higher fuel prices and as we’re in a period of time right now where those tax refunds are largely not coming in, I think consumers are going to feel more of that pressure from higher fuel prices,” said Rainey. “It’s something that we’re keeping a close eye on, but that expectation is built into our guidance for the second quarter.”
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