Updated Aug 7 at 11:27am ET.
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U.S. employers cut 23,000 jobs in July, falling well short of the 80,000 gains that analysts expected. This surprise dip in employment, combined with lower hiring numbers for the previous two months, suggests the labor market is losing steam.
For a massive retailer like Walmart, a weaker job market is a double-edged sword. While it can lead to lower costs for the company to hire its own staff, it often means shoppers have less money to spend on non-essential items like clothes or electronics. Because Walmart sells so many everyday necessities like groceries, it usually holds up better than other stores when the economy slows, but a broader pullback in consumer spending still remains a risk to watch.
Source: Bloomberg Markets and Finance
Niagen Bioscience has launched its healthy-aging supplement, Tru Niagen, on Walmart's website. The move is part of a broader effort by the supplement maker to reach more customers through large digital platforms. While the addition of a single brand is a minor event on its own, it reflects Walmart's ongoing push to expand its online marketplace. By hosting more third-party sellers and specialized products, Walmart aims to compete more directly with Amazon and capture a larger share of the health and wellness market.
Source: Business Wire
Walmart is recalling a popular winter product that has been linked to several hundred injuries and one death. Large retailers often face routine product recalls, and the company has established systems to pull items from shelves and notify buyers quickly. While any event involving a fatality is serious, these types of recalls are a standard part of operating a massive global supply chain. This specific incident is unlikely to have a lasting impact on the company's financials or its reputation with shoppers.
Heading into the next quarterly report, analysts at UBS are looking past a predicted slowdown in comparable sales growth, which measures sales at stores open for at least a year. The firm expects growth of about 3.5 percent, but argues that the market is too focused on this single number.
The real focus for long-term owners should be the shift in how the company makes money. As it grows its advertising and membership arms, it can earn higher profits even if the pace of physical store sales cools slightly. This suggests the business is becoming more efficient rather than just bigger.
Source: Proactive Investors
The retailer has finalized its deal for Vibe.co, a platform that lets brands buy ads on streaming television. This technology will be folded into Walmart Connect, the company's division that sells advertising space to the brands that stock its shelves.
This is a small but important step in the plan to move beyond just selling groceries. Advertising earns much higher profit on every dollar than retail does. By giving brands better tools to reach shoppers on their TVs, the company is building a more profitable business that does not rely solely on selling more physical goods.
Analysts have kept a steady stream of positive ratings on Walmart throughout the year. Most analysts, 48 out of 66, rate the stock a buy, and the average price target of $140 suggests a 26% gain from today's price.
Management has a very consistent habit of setting a bar they can clear, beating expectations in seven of the last eight quarters. You can generally trust the numbers they put out.
| Expectation | |
|---|---|
| EPS | $0.74 |
| Revenue | $186.78B |