Today Walmart issued guidance after the close that warned of slowing sales, profits.
The stock cratered almost 9% on the news.
Walmart said it now anticipates adjusted earnings per share for the second quarter and full year to to decline around 8% to 9% and 11% to 13%, respectively. It had previously expected them to be flat to up slightly for the second quarter and to drop by about 1% for the full year, reported CNBC.
“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars. We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.” said Doug McMillon, Walmart Inc. president and chief executive officer, added Zero Hedge.
Although the OBiden recession is certainly impacting the retail giant, there is also a seismic shift away from cheap Chinese, low quality goods, in favor of higher quality, made in the USA products, that Walmart used to represent decades ago.
Many of our readers have informed us they haven’t visited a Walmart in years. Of course, the new generation immigrant population will flock to Walmart’s low prices, and many Deplorables will have to shop there as well to make ends meet, but that is no longer an automatic decision for America First shoppers.
Many refuse to support the retail giant that they see has sold out America to the Chinese Communist Party. They are willing to spend more, and spend time searching, for American-made products online.
Go Woke, Go Broke applies here.
You can read the full Walmart press release.