dashboard



Walmart's discounts send sales surging

Walmart's discounts send sales surging



Why Walmart is cutting prices on certain itemsReplayMore Videos ... (15 Videos)Why Walmart is cutting prices on certain itemsProducts on the shelves getting smaller? You can blame 'shrinkflation'Hasbro 3D-prints your face on its action figure toysYoung shoppers love buy now, pay later. Here's why that might be a problemMeta launches online store to purchase clothes for your avatarLego is building up its manufacturing footprint in the US´╗┐The story behind the bag that sold out in 2 minutesHere's how much businesses are raking in from the Queen's Platinum JubileeInvestment strategist: Retailers are talking about 'unwanted inventory levels'Sales are up and prices too. Crocs CEO says brand was 'too cheap'Patek Philippe president welcomes hip-hop and NFT fanaticsLuxury watchmakers see good times ahead as shoppers returnInflation is pushing up high fashion prices. Luxury buyers don't seem to mindFacebook's parent company has a brick and mortar store. See what's insideNew tech in Walgreens brings mixed reactions, confusion onlineNew York (CNN Business)Walmart on Tuesday offered a much rosier picture for consumer spending than it had forecast just a month earlier, as the company's steep discounts led customers to shop more at stores.

Sales were up 9%, excluding the impact of the change in exchange rates, last quarter. Walmart recently announced it would cut prices on some non-essential goods, such as clothing and some big ticket items due to an excess of inventory from that shift in spending. That led Walmart last month to slash its profit outlook, warning that inflationary pressures forced consumers to spend more on essentials, such as food, and less on discretionary purchases.The company said it got a good customer response from those price cuts. Although Walmart continues to expect earnings will fall in the second half of the year, it now predicts a smaller drop in profit going forward than it had previously expected. Earnings per share for the year are expected to drop 8% to 10%, excluding divestitures, but that's better than the 10% to 12% drop it forecast on July 25."We're pleased to see more customers choosing Walmart during this inflationary period," said CEO Doug McMillon. He said the need to cut prices on items other than food had helped clear excess inventory, even if those price cuts and the shift in spending had put pressure on profits.Read MoreSales at its US stores open at least a year rose 3%, excluding the spending on fuel. Walmart said it expects to see that same rate of growth in the second half of the year. Since Walmart is the nation's largest retailer, its results are watched not only as an indication of its own health, but the the strength of the US economy overall. The results Tuesday was another sign that, despite worrisome indicators of a possible recession in the months ahead, consumer spending, remains strong. That's probably because of continued strong job growth and increasing wages -- and it's good news for the broader economy, because consumer spending makes up nearly three-quarters of the nation's economic activity.The mega retailer managed to outperform Wall Street's profit expectations, despite inflation and changes to consumer spending habits.The company reported adjusted earnings per share of $1.77, down only 1 cent from what it earned on that basis a year earlier. Analysts surveyed by Refinitiv had forecast earnings to fall to $1.62 a share.It now says that Shares of Walmart (WMT) gained 4% in premarket trading on the news.


Click Here To Get Funded!