Everyday Low Guidance: Walmart Delivers Another Reality Check
Is an anomaly anomalous if it happens twice in three months?
I don't know. That's a bit of a brain teaser. But markets will need to sort it out, because shares of Walmart, which fell the most since 1987 on May 17, fell the most since... well, since May 17, after "treating" investors to an egregious guide down after the bell on Monday.
"The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel i
Trapper Keepers is right up there with your callout of Plaxico Burress, warming the cockles of my heart.
If SNAP saw advertising drop off, where marketing is “business discretionary”, and Walmart sees goods dropping off, and a bunch of “surveillance capitalists” (who actually have plenty of cash and cashflow) like Microsoft, Google, etc are slowing hiring (business discretionary growth) then I suspect we’re in a Recession (meaning a slow down in the economy, probably measured as GDP 😉
So hopefully there’ll be just enough pain to stop all the “discretionary inflation” and when the LNG is figured out for Europe we’ll have a roaring 2023 (juiced by the Fed I’m sure)…
Walmart post suggests disinflation. Fed tightening will be drawing to a close sooner than most suspect. Us treasury market is calling that as well
Texas is currently the Walmart of the states. Cheap labor and perceived cheap taxes. Companies moving here stoned by the historical hubris and individualism wafting on the winds, are not doing proper due diligence in my opinion. One of my favorite companies (you have probably never heard of) moved some of it’s a manufacturing to Texas from California, these guys are electronic engineers by trade, i doubt they factored in future rise of doing business in a state where the tax base is so reliant on agriculture exposure increasingly under rapid (by climate standards) climate dysfunction In my opinion a state so dependent on agriculture and the federal teat will suffer from climate demands exponentially in the coming decades compared to it’s peers.
I have a special local Walmart, it has/had a unique designation among the fleet. The decline of the numbers of shoppers began here in earnest in late April early May and was very evident to me, and it has not recovered.