Seeking Alpha

Wal-Mart's soft sales confirm broad retail trend

  • The warning signs have been out for a few weeks, but Wal-Mart's (WMT) Q2 report confirms that consumers in the U.S. have been pulling back.
  • Though the excuses from companies vary - weather, auto purchases, payroll tax hike - the trend toward softer discretionary spending on lower traffic remains consistent.
  • Sector alert: In addition to missing analyst estimates, Wal-Mart also showed a jump in inventory levels in Q2 and warned on emerging markets.
  • On watch: Costco (COST), PriceSmart (PSMT), Target (TGT)
  • Related ETFs: XRT, RTH, PMR, RETL.
Comments (1)
  • Philip Marlowe
    , contributor
    Comments (1023) | Send Message
     
    Give me a break. Costco reports monthly sales. You do not have to look at Walmart revenues to judge how Costco is doing. Their US comp sales were +4% yoy in July, so they are still growing.

     

    Consumers are pulling back from Walmart, because it is Walmart. They are going to places like Costco and Amazon.
    15 Aug 2013, 07:46 PM Reply Like
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