‘Retail apocalypse’: Wall Street shaken by inflation-induced earnings hits - BusinessWorld Online

CORPORATE.WALMART.COM

Higher staffing costs, bloated inventories and more expensive fuel took a toll on retailer profits, contributing to a market rout that saw Wall Street post its worst day since mid-2020 on Wednesday. Walmart Inc., the nation’s largest retailer, posted a quarterly profit that fell 25%, marking its first miss in five quarters. The gap of 12.3% between Wall Street’s expectations and Walmart’s earnings per share figure was its widest since at least 2017.

“Now that Target missed earnings a lot more than Walmart even did, they’re scared that the consumer is not as strong as everybody thinks.” “The biggest surprise was the inventory markdowns and rollbacks . I don’t think any analyst was expecting that,” CFRA analyst Arun Sundaram told Reuters.Target’s inventories were up 43% in the first quarter, as unsold televisions and bulky kitchen appliances piled up, while Walmart’s rose 32% in the quarter.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

IMF’s Georgieva says finance leaders must prepare for more inflation shocks - BusinessWorld OnlineKOENIGSWINTER, Germany — International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that global finance leaders may need to become more comfortable with fighting multiple bouts of inflationary pressures. Ms. Georgieva told Reuters that it was getting harder for central banks to bring down inflation without causing recessions, due to mounting pressures on […]
Source: bworldph - 🏆 9. / 68 Read more »