People walk near the entrance of a Walmart store in Miami, Florida, on May 14, 2024.
Joe Raedle | fake images
Walmart will report earnings on Thursday, as investors look to the nation's largest retailer to gauge the health of American consumers and the strength of the industry.
Here's what Wall Street expects for discounters, according to a survey of analysts by LSEG:
- Earnings per share: 52 cents adjusted expected
- Revenue: 159.50 billion dollars
As the country's largest private retailer and employer, Walmart is often seen as a bellwether for the American economy. However, it has generally fared better during an inflationary period than other retailers because it sells staples like groceries and has a value-oriented reputation.
Still, the discounter has felt inflation as its customers throw fewer items into shopping carts and become reluctant to buy more expensive items, such as televisions or computers.
This week brought promising news for Walmart and other retailers. Inflation slowed in April, according to Labor Department data released Wednesday. The consumer price index increased 3.4% year over year. The closely watched figure tracks how much goods and services cost at the cash register.
Walmart expects sales to grow for the quarter and the full year. The company said in February that it anticipates consolidated net sales will increase between 4% and 5% in its fiscal first quarter. It also expected adjusted earnings per share of $1.48 to $1.56 on a pre-share split basis. The company completed a three-for-one stock split in February.
Walmart has been cutting expenses in some areas and investing heavily in others. Earlier this week, the company said it would lay off and relocate hundreds of its corporate employees, including moving many to its headquarters in Bentonville, Arkansas. That move came on the heels of another cost-cutting move: closing its Walmart Health Clinics, a network of doctor and dentist offices that had opened alongside its stores.
On the other hand, the big box retailer has invested money in other efforts. As it seeks advertising dollars, Walmart announced in February that it will acquire smart TV maker Vizio in a $2.3 billion deal. It is also updating and modernizing more than 1,400 stores nationwide. It recently launched a new private label grocery brand with items and flavors aimed at younger, more affluent shoppers.
Walmart shares closed Wednesday at $59.83, raising the company's market share to $482.22 billion. The company's shares have risen nearly 14% so far this year, outpacing the S&P 500's gains of about 11% over the same period.
