Walmart is expected to report another quarter of strong sales growth when it releases Q4 earnings on Tuesday, but same-store sales growth is forecast to decline sharply from last year.
US same-store sales are projected to rise 3.2% for Q4 versus 8.8% a year ago.
For full-year fiscal 2023, same-store sales are estimated up 5.35%. Investors will watch grocery sales and any shift to discretionary spending.
Last quarter, Walmart noted a “pressured consumer” and gave soft guidance.
Bank of America analyst Robert Ohmes reportedly wrote to a client, “We expect grocery share gains & trade-down to continue supporting Walmart’s store and online transactions as consumers continue to manage grocery inflation.”
Telsey Advisory Group senior managing director Joe Feldman said, Walmart is “trying to build something like an Amazon Prime; this could be a way towards doing that.”
JPMorgan analyst Chris Horvers suggested that it could be an example of Walmart’s “interest in learning and growing its digital capabilities while clearly [being] willing to take some flyers.”
The company is looking to grow its digital capabilities and compete with Amazon Prime, reportedly in talks to acquire TV maker Vizio for $2 billion to leverage viewer data and offer direct e-commerce sales.
Earnings are forecast to show revenue of $170.66B and adjusted EPS of $1.65 for Q4.
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