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Walmart’s earnings beat expectations amid the pandemic. But, in the US, same-store sales growth is softening — and the lack of a second stimulus package is part of the problem.
On Tuesday, Walmart reported total revenue of $134.7 billion in the most recent quarter, up 5.2% from the same period in 2019 and above analysts’ expectations of $132.2 billion. In the US, same-store sales increased 6.4%.
CEO Doug McMillon said on a call with investors that the company saw less of a boost from government stimulus than it did earlier this year, when US same-store sales grew 9.5% in the second quarter. Managing director of GlobalData, Neil Saunders, zeroed in on this downtick as evidence that Walmart is losing lower-income and unemployed shoppers in a note on Tuesday.
“The ending of enhanced benefits which had a very negative impact on the 12.6 million Americans who are unemployed, particularly those on lower incomes who lack a buffer of savings,” Saunders wrote. “Walmart is more exposed to this group than many other retailers and, as a result saw some deterioration in spending levels.”
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Saunders said same-store sales …read more
Source:: Businessinsider – Politics