Wal-Mart Says February Sales "Total Disaster", Worst Monthly Start Since 2006; Stock Drops

Tyler Durden's picture




 

Wal-Mart shares are plunging as the firm reports a 'total disaster' in its February sales. Bloomberg obtained internal emails that note:

"In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal-Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.... That points to our competitive landscape, which means everyone is suffering and probably worse than we are

It gets better:

“We have to fight against the tougher economic environment to earn a bigger share of a smaller consumer spending pie"

Obviously in WMT speak, "tougher" is what Obama would call "much better and rapidly improving."

Things must not be serious over in Bentonville for this much truth to suddenly hit the tape.

One senior executive summed it up perfectly - “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?” The company notes the end of the payroll tax cut by Obama and asks "We need to stop the stupid."

How odd: why is WMT focused on such trivial anachronisms as "money": can't it just boost its multiple by promising 2022 sales will be stupendously  marvelously humongous. It works for every other hollowed shell of a firm, gutted by Bernanke's central planning.

Perhaps, just perhaps, some reality will finally come back to the market as a result of this disclosure.

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Fri, 02/15/2013 - 15:19 | 3247274 alphamentalist
alphamentalist's picture

People are obviously diverting their cash for moar bargain-priced SPX...

Fri, 02/15/2013 - 15:19 | 3247276 valkir
valkir's picture

Inflation,bitchez.SNAP card cant buy the same amount of crap,as in previous monts.

Fri, 02/15/2013 - 15:42 | 3247399 Agent P
Agent P's picture

Well, yes and no.  SNAP benes are indexed to inflation, but your statement holds true given food inflation > CPI.

Fri, 02/15/2013 - 15:20 | 3247277 Cursive
Cursive's picture

It (our economic delimna) will be so obvious 100 years from now.  In the present, though, you would think we lived in absolute Nirvana.

 

We need a Youtube video of "Where are all the customers and where is their money?"

Fri, 02/15/2013 - 15:19 | 3247279 seek
seek's picture

Every peice of consumer data I've worked with as part of my business has painted a 2008-level collapse that started in Q3, this Walmart data doesn't surprise me.

I wouldn't be surprised if the gold sell-off is due to someone(s) needing to convert into USD, EUR, JPY, whatever in reaction to this weakness. With the degree of stock manipulation, we can't look to stocks, VIX, etc to show economic stress anymore.

Fri, 02/15/2013 - 15:34 | 3247359 adr
adr's picture

same here, but this is worse than 2008. Order levels have never been this low. Unless you have the ability to channel stuff, you're fucked.

If you're private, you can't channel stuff because you don't have the ability to order a couple hundred million in inventory that will never sell. That would be called going bankrupt in short order.

Funny thing is that kind of business decision is good for at least a 30% run up on a Wall Street traded stock.

Fri, 02/15/2013 - 16:27 | 3247604 Mrmojorisin515
Mrmojorisin515's picture

I honestly believe that the entire purpose of a central bank is to centralize control over every aspect of industry.  At least under a gold standerd larger corp were held to some level of reality. Take a looksee at how every industry began to be bought up by mega corps after the end of the gold standerd.

Fri, 02/15/2013 - 16:47 | 3247677 Maos Dog
Maos Dog's picture

100% Agree with the above.

Business for us, by any measure, has not been this bad since the end of 2008 - early 2009. It's really starting to get scary.

 

 

Fri, 02/15/2013 - 16:49 | 3247688 aerojet
aerojet's picture

Well, I wish they had to sell their fucking oil contracts, too!

Fri, 02/15/2013 - 17:49 | 3247850 sschu
sschu's picture

 

We are in the employment services business is Seattle.  Locally we typically lag the broader economy by about 6 months.

This started for us in early December, the phone just stopped ringing.  It had an eerie 2008 feel to it, I thought it just might be the season.  But 2013 has started out VERY slow, most of our customers are seeing the same.  This appears to be a broader trend.

I think the combo of Bam getting elected, the price of oil, the payroll tax hikes, the upcoming budget battle and most nasty the ACA in 2014 have business pulling back and they are worried BIG TIME.

Bam, Bennie and Congress will ride to the rescue soon enough .... hope not.

sschu

 

Sat, 02/16/2013 - 10:16 | 3249234 DaveyJones
DaveyJones's picture

more where that came from

this is the innevitable slip back after all the tricks not only don't work but make it much worse

Fri, 02/15/2013 - 15:20 | 3247280 nobusiness
nobusiness's picture

But...But retail sales are up and the consumer is confident!!!!

 

 

Fri, 02/15/2013 - 15:21 | 3247286 nonclaim
nonclaim's picture

When everybody is preoccupied with the horse meat scandal nobody cares for the horseshit that passes as the market these days.

Fri, 02/15/2013 - 16:19 | 3247556 The Heart
The Heart's picture

Ah yes...the lie spewing propagandist detractors and lords of illusionary distractions department is working overtime. What well planed collapse and impending declaration of war against the American People? How about that spectacular show in Russia. DA14!!!

Next week, it will be tales of the Sidewinder glove-puppets making more profits for the banksters of babylon as bastions of Purim seeking zio-nardics attack anything that moves in the world for having to much THC in your system while driving anywhere in Arizona.

Hot dogs, Popcorn, Peanuts and a prize!

Cigars, cigarettes, Tiperellos?

Hike!

Sat, 02/16/2013 - 09:47 | 3249199 goldfish1
goldfish1's picture

At work, the horsemeat scandal was understood to be confined to "Europe", courtesy msm.

Fri, 02/15/2013 - 15:22 | 3247290 machineh
machineh's picture

Isn't it obvious? 

It's weather's fault -- snow, ice, asteroids. shit you can't believe.

Next month all better ...

Fri, 02/15/2013 - 15:24 | 3247297 Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

So the way I see it is this:

A) The recession is finally over, as Walmart shares are counter cyclical to good times, as the folks go shopping at Walmart when they have little money, so Walmart not doing well means the good times, they is here again, as all the Walmarters have gone upscale!!

B) We were just on a ledge on the first drop down the cliff, woke up dazed and confuzed, rolled over and just fell off.

 

I'm thinking Aaaa… Beeeee? Umm-mm-mm…

 

•J•
V-V

 

Fri, 02/15/2013 - 15:41 | 3247392 GeezerGeek
GeezerGeek's picture

When my wife heard that the Dow was at 14K she switched from Walmart to Nieman Marcus and Nordstroms. After all, we must now be rich, right?

Fri, 02/15/2013 - 15:26 | 3247298 Cognitive Dissonance
Cognitive Dissonance's picture

Missed it by >          that          < much.

Fri, 02/15/2013 - 15:26 | 3247302 Hohum
Hohum's picture

Three words: Winter Storm Nemo OR payroll tax hike.

Fri, 02/15/2013 - 16:27 | 3247603 CheapBastard
CheapBastard's picture

caused by 'Global warming' is rumor on the street....

Fri, 02/15/2013 - 16:28 | 3247609 Ident 7777 economy
Ident 7777 economy's picture

 

 

 

Three words: Winter Storm Nemo OR payroll tax hike. "

 

Think about it, Pilgrim, Walmart execs are probably smart enough to be looking at store sales in the South, the NE, SW, W, etc ... you don't think they have that kind of granularity in their internal sales numbers?

 

 

Fri, 02/15/2013 - 22:51 | 3248616 Withdrawn Sanction
Withdrawn Sanction's picture

you don't think they have that kind of granularity in their internal sales numbers?

BINGO.  Wal*Mart was one of the first firms to use data warehousing in a big way starting in the early 90s.  All the POS store data fed into Bentonville.  Gave them a great advantage in administering inventory and controlling costs.  They could tell, for example, up to a week before the CDC where cold/flu outbreaks would be headed based on sales of cough/cold remedies.  No doubt it's much more sophisticated today.

They've got the data, so why are telling US? My guess is it's as bad as most of the businesses I see and the truth eventually leaks out.  Was at the HD today shortly after lunch.  Usually on a Friday (esp prior to a snow storm), place would be mobbed.  Had my choice of parking spaces (not just 1 or 2 either, but more than a dozen, just that I could see)...and way too many un-busy clerks who wanted to "help" me.  It was a ghost town.  Just another anecdote, sure, but the plural of anecdote is data.

Fri, 02/15/2013 - 15:26 | 3247306 ziggy59
ziggy59's picture

Is info a leak?... Before 4 pm this type of info?
This right before a 3 day weekend..

Fri, 02/15/2013 - 15:30 | 3247307 Waterfallsparkles
Waterfallsparkles's picture

There were things that I wanted to buy before and after Christmas.  I shopped on line thru Walmart and Kmart.  Walmart had many of the items on line but did not carry or have them in the store.  To get the items I had to pay shipping.  Plus if you had the item shipped to the store it would take 2 weeks.

Where Kmart had all of the items in their over stuffed store.  I bought the items there.  Also Kmart has a great program called GoFor.  You buy your items on line and they get them for you thruout the store and you pick all of them up at the Layaway desk.  I loved this.  It saved me looking for the items in the store and all I had to do was to pick them up and having paid on line I saved the lines at the cash register.  I also bought some items online and they shipped them for free and sent many of the items from their local stores.  Plus, I found Kmart prices better than Walmart.

Fri, 02/15/2013 - 16:27 | 3247600 disabledvet
disabledvet's picture

Discounters???!!!! You shop at discounters???!!! My heavens to be...and our President is a what???!!!

Fri, 02/15/2013 - 16:36 | 3247630 FoeHammer
FoeHammer's picture

Cool Story Bro

Fri, 02/15/2013 - 16:53 | 3247694 aerojet
aerojet's picture

That's not compelling enough for me to want to enter our local KMart, which is where all the crack addicts shop.

Fri, 02/15/2013 - 18:29 | 3247980 Temporalist
Temporalist's picture

Crack is on sale?!?!?!  Nobody told me!!!

Sat, 02/16/2013 - 01:20 | 3248853 Intoxicologist
Intoxicologist's picture

K-Mapart.  That's what we used to call 'em. lol

Fri, 02/15/2013 - 15:27 | 3247310 ekm
ekm's picture

Daah. Unaffordable crude oil means everything else is unaffordable, even wal mart.

 

As I've said in the past few days, I no longer check dow or s&p and don't really care. The only thing to observe is CRUDE OIL PRICE.

Fri, 02/15/2013 - 15:32 | 3247347 waterwitch
waterwitch's picture

You would think Gold would move in sympathy with oil, but...

Fri, 02/15/2013 - 15:41 | 3247385 ekm
ekm's picture

Gold is paperized by central banks. It's been like that since 1971. No chance.

Oil can be paperized too, but the real economy will suffer as it is now.

Fri, 02/15/2013 - 15:40 | 3247384 pursueliberty
pursueliberty's picture

Wish I had more up votes.

 

Take $20 out of the check for changing back to old ss rate, take another $20 spot out of the take home for increase in fuel price= stretched consumer with $40 less a week to spend a wally world.  Multiply that by every family who still works in this country and I figure it is about $1.2 billion a week out of the economy on the low end.

Fri, 02/15/2013 - 15:41 | 3247393 ekm
ekm's picture

thank you

Fri, 02/15/2013 - 16:33 | 3247623 The Heart
The Heart's picture

Bing...batta...bang!

http://www.youtube.com/watch?v=b0cRHsApzt8

Watch the oil prices...they know.

Next Week?

Dark Moon One Thirty-Three AM??

Fri, 02/15/2013 - 15:28 | 3247314 ziggy59
ziggy59's picture

Their income is based on "stoopit"

Fri, 02/15/2013 - 15:28 | 3247316 Canucklehead
Canucklehead's picture

I think Walmart's problem is the change in demographics hitting the North American marketplace.  Bitter Old Women are getting younger nowadays.  Take Ashley Judd as an example.   Mike Bloomberg is another example.

Consumer buying habits are changing.

Fri, 02/15/2013 - 15:44 | 3247412 Shizzmoney
Shizzmoney's picture

Right; I think the American consumer is sloooooooowly turning around to realizing that shit's not quite right in Kansas.  Hell, yesterday ALL major networks averaged a total of 12 million viewers for their Thursday night programming (the weekly big night for MSM sitcoms).

Wal-Mart is the same.  Consumers, who are getting paid less, who aren't getting jobs, and who are sick and tired of the bullshit from corporations - are starting to explore new avenues to buy the stuff they want and need.

I work for a vendor that sells shit to Wal-Mart.....and NO one I know, shops there.

Votes ain't counting in Congress?  Vote with your wallet, bitchez!

Fri, 02/15/2013 - 16:32 | 3247621 CheapBastard
CheapBastard's picture

Who needs food? I'm saving for a Russian meteorite fragment:

 

http://www.ebay.com/itm/3-76-GM-Sikhote-Alin-Russian-Meteorite-Iron-Crys...

 

....even if it's from 1947, these things are like houses, they never go down in price....Never !

Fri, 02/15/2013 - 16:32 | 3247622 HobbyFarmer
HobbyFarmer's picture

Logged in just to +1 you for: Vote with your wallet.

My wife and I are on the verge of embracing fully the 'minimalist lifestyle'.  Less stuff needs less storage means less stress and more savings.  It's been working great for us.

Regarding voting with our wallets: we're picking up some useful "forgotten" skills including making our own laundry detergent and dish washing soap.  Works great.  About 20 dollars of materials will make a years supply in about 20 minutes.  Fun activity for the kids to help with, too.

I am voting with my dollars since my Ron Paul votes didn't seem to register with anybody anywhere.  I'm voting for less stuff, fewer toxic chemicals in my house, and more savings for PM's (to hopefully pass to my grandkids someday). Cutting gas, growing more food (our goal is in the neighborhood of 60% of what we eat in 2013), spending less.  Life is better now for me than it ever has.  Hope you ZH'ers embrace this ideology and get the same mileage.

Fri, 02/15/2013 - 16:41 | 3247647 FoeHammer
FoeHammer's picture

+1 Sir.

 

I like your style.

Fri, 02/15/2013 - 16:47 | 3247672 The Heart
The Heart's picture

"Hope you ZH'ers embrace this ideology and get the same mileage."

In the multidimensional garden of the mind, ideology is philosophy gone wild and put to good application and manifestations in the New World Paradigm of the Now.

 

Fri, 02/15/2013 - 16:54 | 3247697 aerojet
aerojet's picture

Are you selling women their own fat asses back to them?

Fri, 02/15/2013 - 17:25 | 3247795 HobbyFarmer
HobbyFarmer's picture

not selling anything....and not many fat women around where I live (farming country, mid west).  My kickboxing classes are full of amazingly shaped women who could out exercise most men (I'd safely wager).  And the females on the farms around here are in a serious type of fitness-level that wouldn't be believed.  One woman who sold a calf to me and later returned to help me dehorn it admits to working 80 hours.  She made it seem like nothing, 7 days of labor a week, because the animals depend on her.  It's the way she was raised, she explained to me.

Too often in ZH we focus on the sheeple or the walmart hordes (are they different?).  I don't believe America will fail as long as I have neighbors like this.  If you get to cynical about the direction our nation is headed, meet a farmer.  Not me, I only do it for fun and hardly consider myself "one of them".  I mean an honest full time farmer.

People on welfare should have to volunteer hours at the nearest dairy.  It would clean up the welfare lists FAST.

If you're referring instead to scene in the fight club where they are busting into the garbage of the clinic to retrieve human fat, LOL.

Fri, 02/15/2013 - 17:22 | 3247786 tip e. canoe
tip e. canoe's picture

care to share your recipe for dishsoap?

Fri, 02/15/2013 - 17:30 | 3247805 HobbyFarmer
HobbyFarmer's picture

There are several sites out there with this recipe or a similar version .... I am not affiliated with this site/blog in any way, you could do the google search to find it on several hundred other sites, no doubt:

http://www.thriftyniftymommy.com/2012/12/homemade-dishwasher-detergent-recipe.html

Please note: if you make it yourself, it will harden incredibly fast!  We put it into ice trays, let it harden, and remove it to a plastic bag.  Each time we run the dishwasher, we add one 'ice cube' (about a tablespoon) and some vinegar.

Works fantastic.  Fun to make as a family (three young boys).  Saves money. 

Fri, 02/15/2013 - 17:38 | 3247826 tip e. canoe
tip e. canoe's picture

epsom salts, haven't heard that ingredient before.   makes sense tho.   thanks mate.

Fri, 02/15/2013 - 21:33 | 3248401 Angus McHugepenis
Angus McHugepenis's picture

tip e. canoe: Epsom salt is a scam. Go buy a $5 10kg bag of rock salt that is used for winter traction and add it to any bath or as an ingredient in high end cosmetic bath products. I defy anyone to tell me they can feel the difference. Salt is salt, plain and simple. Believe me, I used to work with a person who would sub rock salt and call it Epsom on the label. He never had anyone that purchased his products come back and claim it wasn't Epsom. And he's still doing it after 10 years.

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