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Wal-Mart warns on profits

  • Wal-Mart (WMT) sees Q4 EPS at or below its previous guidance of $1.60-$1.70.
  • For the full year, the company also sees EPS at or below its previously stated range. (PR)
  • WMT -2.2% premarket
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Comments (22)
  • AZ Desert Trader
    , contributor
    Comments (242) | Send Message
     
    well that can't be good. Walmart is probably the single best indicator of the overall economy.
    31 Jan, 08:10 AM Reply Like
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    yeah when they move into any small community everybody there ends up working for them. they are the nations largest private employer
    31 Jan, 08:44 AM Reply Like
  • Andysud
    , contributor
    Comments (266) | Send Message
     
    They are the nations largest welfare recipients. Downward mobility and decreasing pay rates have worked wonders for them. Incredible business plan if you're a Walton.
    31 Jan, 09:24 AM Reply Like
  • Minutemen
    , contributor
    Comments (1199) | Send Message
     
    Walmart warns on Q4 earnings, yet the U.S. 2013 Q4 GDP was up 3.2%. I think this says a lot about Walmart's own failing growth and loss to online retail more than "the single best indicator of the overall economy."
    31 Jan, 10:51 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11158) | Send Message
     
    I said that similarly with Amazon's poor guidance. The only thing that seems good is wasting more money on mobile ads with Facebook which is clearly just wasting money since they ad out to exactly the same people as on PCs and laptops. Marketing people today seem even dumber than salespeople on Salesforce these days.
    SO now who do we have signaling a weak 2014? Walmart, IBM, Amazon, McDonalds, so far yet this economy according to the Federal Reserve is strong. Lies. Believe the private sector, they reveal fundamentals not managed manipulation by the government, central bank, and bankers eager to prop up the economy short term so they can dump off losers to the deluded right up to the crash.
    31 Jan, 11:49 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1093) | Send Message
     
    I don't think that's true, anymore. This is a problem exclusive to Walmart that's been swept under the rug by the company's historically high correlation with economic health. Walmart's personnel policies and selectively higher pricing are having a noticeably chilling effect on consumers. The stores are being run on skeleton crews, they're filthy, there's no door greeter, no one who works there smiles at anyone, it takes up to an hour to buy something from the electronics department if you're lucky enough to catch anyone's attention on your first or even second trip to the store, and half of the prices are twice what you pay elsewhere.
    31 Jan, 12:46 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1093) | Send Message
     
    100% agree, with an addendum: Do a walk-through through your local Walmart (if you have one) sometime and ask yourself if anyone looks pleased to be shopping there.
    31 Jan, 12:53 PM Reply Like
  • Minutemen
    , contributor
    Comments (1199) | Send Message
     
    Moon: Sorry, but none of those stocks are bell weathers of the economy. Plus, you have to dig a bit deeper and look at what factors drove revenue or earnings gains/losses. McDonalds is simply facing pressure from a greater selection of fast food chains that offer better, different, and/or healthier menus (e.g., Chipotle (CMG) - the stock is up about 14% today on an earnings beat - I didn't see you mention them). Amazon had strong growth in revenues and margins, but they have high operational costs that reduce their earnings (they have heavy losses on shipping costs from Amazon Prime memberships, e.g.). Walmart is heavily dependent on the poor, who are facing cuts in government subsidies such as food stamps.
    Your take on the economy and stocks you listed to infer poor economic growth is naive and ill informed.
    31 Jan, 12:54 PM Reply Like
  • snichols@go2nico
    , contributor
    Comments (11) | Send Message
     
    You guys need to keep in mind that WMT employs more than 2 million Americans that might well be unemployed if not for WMT. WMT also looks inside the company for promotions rather than outside. The people running WMT today started out on loading docks and stocking shelves years ago. They also pass their efficiency in controlling costs TO THE CUSTOMER through lower prices than their competitors offer. That helps keep inflation low for every American.
    31 Jan, 02:43 PM Reply Like
  • Minutemen
    , contributor
    Comments (1199) | Send Message
     
    If WMT didn't exist, other retailers would fill the void, including providing jobs. WMT does nothing special.
    31 Jan, 02:51 PM Reply Like
  • th3decider
    , contributor
    Comments (365) | Send Message
     
    So in your view it would better if the people working for Walmart had no jobs and went on full welfare instead of working an entry level job to gain experience and skills while just getting minor assistance like foodstamps?
    31 Jan, 03:40 PM Reply Like
  • Minutemen
    , contributor
    Comments (1199) | Send Message
     
    I didn't state that all. You completely fabricated your response out of thin air. I said if WMT didn't exist, other retailers would fill the void (either current competitors would have more stores or new retailers would exist). It could be the case that this world without WMT would be a place of better products, better paid and happier employees. But we'll never know will we.
    31 Jan, 03:56 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    Don't worry... 1.3 million dropped from EUC2008 will rotate to food stamps... Unless they were already on it. Though I suspect the EUC paid more than SNAP.
    31 Jan, 09:11 AM Reply Like
  • investingInvestor
    , contributor
    Comments (1560) | Send Message
     
    Walmart is being Amazon'd and also Costco'd.

     

    1) Amazon has many more SKUs for better selection, including third parties.
    2) Costco has around 3,000 seasonally changing SKUs for lower prices, when available.
    3) Walmart has been opening stores in urban and suburban areas with high local traffic, including foot traffic from Metro stations.
    4) The rural demographic that Walmart was built upon is stagnant.

     

    We are seeing peak Walmart, unless Walmart makes big changes. And we have seen how difficult this is with Sears and Best Buy.
    31 Jan, 10:31 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1093) | Send Message
     
    It's not the economy, it's Walmart. Take some time out and ask a Soccer Mom or Single Moms. (Walmart's former and current demographic.) No one wants to work there. No one I spoke with enjoys shopping there any more.

     

    http://bloom.bg/ZrV9XV
    31 Jan, 12:57 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    If Walmart China really invested in 360buy.com, now JD.com, that will certainly increase WALM value. As JD.com filled for HK IPO.

     

    I buy P&G deodorants at Walmart, other stuff is lousy there.

     

    Go to Costco!!
    31 Jan, 01:21 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    If no one wants to work there, then why did they apply to work there in the first place. It is their right.

     

    And if no one wants to shop at Walmart that is their right also.

     

    But don't complain about it, just don't do it!
    1 Feb, 12:51 AM Reply Like
  • John Cusack's Pancreas
    , contributor
    Comments (41) | Send Message
     
    WMT is one big corporate wellfare baby. They pay the kids that work there peanuts and benefit from the .gov foodstamp program more than anything - by having both their employees AND average customers being reliant on .gov for their Cheetos and Mountain Dew.
    31 Jan, 03:25 PM Reply Like
  • glmd
    , contributor
    Comments (6) | Send Message
     
    The people who work at Walmart can only work there.just ask any of them.......never been employed any where else.walmart is there only savior. No walmart and they will be on the streets.
    1 Feb, 08:25 AM Reply Like
  • glmd
    , contributor
    Comments (6) | Send Message
     
    WMT will survive and prosper,they know how.......you can not buy that it's experience and common sense. The very poor,elderly and disabled will always,always need work and it will never be more than minimum wage pay........few can make a profit employing these and WMT IS THE VERY BEST.
    1 Feb, 08:31 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    Wal-Mart, Amazon show changing shopping habits
    Kansas City Star - ‎17 hours ago‎
    NEW YORK - The financial strains and shifting shopping habits of Americans have led to uneven fortunes for retailers. Jacquelyn Martin | AP Photo In this Wednesday, Dec. 4, 2013, photo, Tracey Anderson, 26, re-stocks X-Box sets on opening day of a new ...
    1 Feb, 09:24 AM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    Here seems to be the cause...
    http://nyti.ms/1eO1kdy

     

    "More broadly, about 90 percent of the overall increase in inflation-adjusted consumption between 2009 and 2012 was generated by the top 20 percent of households in terms of income, according to the study, which was sponsored by the Institute for New Economic Thinking, a research group in New York."

     

    This seems to be borne out in today's auto sales with high end auto sellers not impacted by the weather vs Ford.
    3 Feb, 04:14 PM Reply Like
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