Nov 16, 2023 - Business
Charted: Walmart sees "wobbling" consumers
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Strong grocery sales continued to power Walmart in the third quarter, but the retailer sounded a cautionary note on consumers, Nathan writes.
Driving the news: There was "potential weakness or wobbling among the consumer" in the second half of October, CFO John Rainey said today on an earnings call.
- Walmart's stock closed down 8.1% late Thursday after reaching an all-time high a day earlier.
The impact: The downbeat comment overshadowed an otherwise strong report.
- Comparable sales at U.S. Walmart stores rose 4.9% in the period compared with a year earlier, as the company reported "strong gains in grocery."
- By keeping prices low, "Walmart has made very serious inroads on the online grocery front," GlobalData Retail analyst Neil Saunders wrote today.
- Insider Intelligence noted that Walmart is widening its lead on Amazon in online grocery sales.
The bottom line: "I think our value proposition resonates more than ever when the consumer is pressured," Rainey said.
