Nov. 18, 2013, 11:38 AM| Nov. 18, 2013, 11:38 AM | 11 Comments
Nov. 18, 2013, 7:14 AM
- Wal-Mart (WMT) attributes part of its recent sales slowdown to the concerns of consumers over the impact of the Affordable Care Act.
- Execs maintain the uncertainty over how the healthcare costs will impact personal budgets could cut into the confidence of shoppers to open up their wallets in Q4 and beyond.
Nov. 16, 2013, 10:08 PM
- "Our problem is that the S&P is up this year about 25% on earnings that are up 3%. So we've got a market that is rising because of P/E expansion," 21-year GMO veteran Ben Inker tells Barron's (one recalls a similar warning from Guggenheim back in August).
- Inker argues that because P/E multiples are still expanding at a time when profit margins are "already as good as we've ever seen," the prospects for upside surprises to profit growth look "pretty dim" going forward.
- As for bonds, Inker characterizes the return on U.S. government debt as "horrible" and says corporate debt "is riskier than people are making it out to be, particularly the very low-rated stuff."
- Inker's picks for the current environment: TIPS, "high-quality" U.S. companies, and emerging-market stocks where reasonable valuations leave room for some upside.
- "High-quality" U.S. stocks mentioned include: JNJ, MCD, WMT, MSFT
- TIPS ETFs: TIP, VTIP, IPE, SCHP, LTPZ, STPZ, TIPZ, STIP, TPS, TDTT, TDTF, TIPX
- EM ETFs: EEM, VWO, EDC, EDZ, SCHE, IEMG, EEV, PIE, ADRE, EUM, EET, GMM, EEME, EMCR, DBEM, EWEM, FEM, EMLB, EMSA, EMFT, EMDR
- High-yield ETFs: HYG, JNK, HYS, HYLD, SJNK, PHB, SJB, ANGL, XOVR, UJB, QLTC
Nov. 15, 2013, 9:41 AM
- Wal-Mart (WMT -0.3%) needs to give Sam's Club its independence, reasons Belus Capital Advisors analyst Brian Sozzi.
- The wholesale club has an impressive record of comparable store sales growth, but profits have suffered as it remains part of the Wal-Mart distribution behemoth.
- A spinoff would let management create a stronger brand identity and could give Costco (COST +0.1%) something to worry about.
Nov. 15, 2013, 7:40 AM
Nov. 14, 2013, 12:57 PM
- Wal-Mart (WMT +0.2%) failed to meet one of its stated corporate goals as U.S. net sales growth of 2.4% lagged inventory growth which came in at 5.1%.
- Though company has been reported to have already pulled back on orders from vendors and the inventory gain was a deceleration from Q2's pace, the gap still surprised retail analysts.
Nov. 14, 2013, 8:25 AM
- Wal-Mart (WMT) CEO Mike Duke said customers in the U.S. feel uncertain about the economy and jobs stability during his pre-recorded earnings call (no Q&A).
- Sluggish sales were seen in grocery and entertainment which both comped mildly negative during Q3. Stronger categories included hardlines and health and wellness which stood out as out-performers.
- Membership income at Sam's Club improved 8.1% during Q3.
- Two highlights from the quarter were the contributions from Yihaodian (e-commerce) and Neighborhood Markets (grocery). Both are forecast to see more accelerating sales as they stay in a growth phase.
- Earnings call transcript (.pdf)
- WMT -1.5% premarket.
Nov. 14, 2013, 7:15 AM
- Wal-Mart (WMT) reports comparable store sales in the U.S. declined 0.3% during Q3. Comp sales rose at Sam's Club by 1.1% and by 3.4% at the new Neighborhood Market line of stores. E-commerce positively impacted the comp sales mark by approximately 0.2%
- Segment revenue growth: Walmart U.S. +2.4% to $67.692B; Walmart International +0.2% to $33.109B; Sam's Club +1.1% to $14.075B.
- The company plans to close 50 under-performing stores in Brazil and China which will be dilutive to EPS by $0.06.
- Guidance for Q4 EPS is lowered to $1.60-$1.70 vs. $1.69 consensus.
- WMT -0.1% premarket.
Nov. 14, 2013, 7:03 AM
Nov. 14, 2013, 12:05 AM
Nov. 13, 2013, 5:30 PM
Nov. 12, 2013, 7:46 AM
- Wal-Mart (WMT) says it will hold major sales events on Thanksgiving night, beginning at 6:00 p.m.
- Though many retailers opened their doors last year on Thanksgiving, most held back from moving their highest-profile promotions away from Black Friday.
- This year will see more sales events and managers specials creeping into the Thanksgiving holiday.
Nov. 11, 2013, 12:50 PM
- Morningstar calls the pet industry "fairly" recession-proof as consumer spending has continued to grow in a mid-single digit rate to outpace broader retail trends.
- Despite a general crowding-out effect from spending on autos and home improvements in many discretionary categories, the level of spending per pet has risen in the U.S. over the last year.
- Though retail giants such as Wal-Mart (WMT +1.2%) and Target (TGT +0.9%) are significant players in the pet industry, it's PetSmart (PETM +0.5%) that stands to benefit the most despite its alarming Q3 slip, note analysts.
Nov. 7, 2013, 9:30 AM
- Wal-Mart (WMT) will issue refunds and a $10 e-gift card to customers who thought they were getting the bargain of a century yesterday when the retail giant's website starting spitting out random numbers for prices on select items.
- Some retail analysts think the mishap could end as more than an embarrassing tech glitch, with extra traffic flowing to the Wal-Mart website where recent comparison trackers have found the pricing competitive.
Nov. 6, 2013, 1:09 PM
- Wal-Mart (WMT +0.8%) says a technical glitch caused a number of products to be listed at dramatically low prices on its website earlier today in a development that has lit up various retail and coupon-clipping blogs.
- Consumers report that they weren't able to complete the transactions at the false prices.
- WMT screenshot: $600 digital projector listed at $8.85.
Nov. 1, 2013, 7:56 AM
- Wal-Mart (WMT) will launch online holiday shopping deals today as it tries to get an early jump on pre-Cyber Monday online sales.
- Major retailers (COST, TGT, BBY, PSMT, M) are a bit edgy this year with six fewer shopping days landing between Thanksgiving and Christmas amid forecasts for slow traffic at malls and strip shopping centers.
- Morgan Stanley's Kimberly Greenberger thinks the 2013 holiday season will be the most promotional one since 2008.
- Related ETFs: XRT, RTH, RETL, PMR
WMT vs. ETF Alternatives
Wal-Mart Stores Inc operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club in three categories retail, wholesale and others.
Other News & PR