Weather’s role in wildfires in Atlantic Canada | SaltWire #weather #climatechange #wildfireseasonNEW YORK - Walmart's earnings amid signs of weaker discretionary spending could add fuel to a rally that has propelled its shares to record highs, or potentially spook investors looking to justify the heavyweight retailer's pricey valuation.
Wall Street anticipates Walmart to report nearly 6% growth in net income for its first quarter ending April 30, per LSEG. Earnings per share are expected to hit 52 cents, the top end of Walmart's forecast provided in February. Walmart replenished its inventories at a slower rate than some of its peers, according to LSEG data for the fiscal quarter ended January 31. Both Kroger and Costco showed better inventory turnover than Walmart, according to LSEG data for their latest fiscal quarters. High inventory levels potentially raise Walmart's costs, jeopardizing its profit margins.
Americans' spending intentions remain weak compared to 2021, at least for non-essential, discretionary merchandise like clothing, according to Deloitte, which conducted surveys to measure demand.