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Wal-Mart Misses Revenue, Guides Below Expectations: FX, Slow Economic Growth Blamed
It's deja vu time for Wal-Mart. Spot the trend:
- Q1: Wal-Mart Misses Revenue, Guides Below Expectations: Weather Among Factors Blamed
- Q2: Wal-Mart Misses, Guides Below Expectations; Blames Weak Consumer Spending, Payroll Tax, FX And Lack Of Inflation
Spot it yet? Good. Sure enough, in Q3 continuing the trend, moments ago Wal-Mart just missed revenues, and you got it: lowered guidance.
Full breakdown:
- EPS $1.14 vs Expectations of $1.13. This was driven by a buyback of 23 million shares for $1.7 billion in the quarter
- Revenues missed $115.69 billion vs Expectations of $116.82 billion
- Q3 WalMart US comp store sales missed, and ex-fuel printed at -0.3% vs +0.5% expected, and down from +1.5% a year earlier
- Q3 Total comp store sales missed, ex-fuel printed at -0.1%, +0.3% expected, and down from +1.7% a year earlier
- WMT guided to Q4 EPS of 1.50-1.60 (including adjustments) vs expectations of $1.69
- WMT guided to year end EPS of $5.01-$5.11 (including adjustments) vs a previous guidance of $5.10-$5.30
From the report:
"For the fourth quarter, we expect EPS to range between $1.50 and $1.60. Our guidance includes the impact of approximately $0.10 per share for certain items described below. Accounting for these factors, we believe our fourth quarter underlying1 EPS will range between $1.60 and $1.70," said Holley.
"For the full year, we are updating our EPS guidance to range between $5.01 and $5.11. Accounting for the $0.10 of certain items that will impact the fourth quarter, our full year underlying1 EPS will range between $5.11 and $5.21," added Holley.
The company's guidance reflects a view of global economic trends, including ongoing headwinds from currency exchange rate fluctuations, a competitive holiday season, and a full-year effective tax rate that is expected to range between 31 and 33 percent.
And the punchline:
"A challenging global economy and negative currency exchange rate fluctuations impacted our sales growth in the third quarter," said Doug McMillon, Walmart International president and CEO. "In the fourth quarter, we will continue our progress on managing expenses well and staying focused on growing sales, including e-commerce. Still, the slow-growth macroeconomic environment is persisting through the first month of this quarter, and the markets continue to be competitive."
And now, BTFATH.
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We're in a recovery here.....what the hell is Walmart doing?
Attention WalMArt shoppers!! Hello.... Anybody there?... Is this thing on??
Everyone's in the equities aisle.....it's mayhem over there.
Falling prices my ass! Things are so bad.....we'll never get a chance to buy stocks at these low low prices ever again.
Total revenues only grew by 1.7% YoY. However, knowing that a lot of the stuff that Wal-Mart sells had prices increased by anywhere between 7 to 10% last year (sometimes even more), this means that the total VOLUME of goods sold is way down YoY. So mediocre YoY growth in revenues but negative growth in volumes of goods sold. That’s what no MSM will report on.
wait untill next qtr. when that 40.00 a person shows up...
The economy is weak, we need more QE say $200 Billion a Month's worth. Yellen, make it so.
We are probably already at $200 billion/month. We just haven't been told yet... Who in his right mind wants to buy US treasuries? Worthless paper printed in industrial scale.
If you look at the modern 2013 supermercardo the hot sales are in groceries, specifically “luxury” items like frozen ready to eat meals and prepared food.
Maybe related to the EBT billions?
Take away grocery sales from the supermercardo and you have a better understanding of the real economy.
LOL!
this is walmarts real story http://www.youtube.com/watch?v=d4o13isDdfY#t=2654
and apples and starbux ect...
Hey now! Things are wonderful. We've got CHOICE!
There's worthless USTs AND worthless crap from China! What a country, what a world!
Ya think that margin compression is cranking up in the back room?
Could this be related, amongst other things, with the criminals of the US government stealing record 'taxes' last fiscal year?!
http://cnsnews.com/news/article/terence-p-jeffrey/2472542000000-record-t...
"Government can only steal and kill, producing only poverty, misery and death. Nothing more."
no, no, no....you are wrong. inflation is only 1.7%.....this accounts for the 1.7% yoyoyo growth in revenue. sales are flat.
don't go spreading rumors that real inflation is like 7-10%.....you may scare the animals in the zoo with their SNAP cards.
They are factoring in the 6% EBT haircut for the holiday season. Ho Ho Ho.
It's all Bullshit!!! Rally on
Who cares about the losers who shop at Wal Mart. These fat lazy slobs are getting what they deserve. Have you seen the results where winners shop? Restoration Hardware, Sprouts Farmers Market, Michael Kors, Ralph Lauren, Nordstrom.....LOL
The XRT retail etf is up almost 50% this year. Economy is booming fellas. Just not for the fat lazy sloths at Wal Mart. Economy is handing out some social justice. Finally, the motivated, fit, educated and savvy are getting what they deserve....most of the wage gains. LMFAO
Don't know where the sarcasm ends and the smugness starts...
Keep in mind that economies of scale allow the "smug" to enjoy price breaks. It's kind of like the USPS and junk mail, consider the "lazy" (as you refer to them) as junkmail, remove that volume of crap and those postal rates for the "meaningful" mail (quality) would skyrocket.
Economies of scale in reverse. All the smug fuckers out there are going to get blindsided.
WalMart is the cheapest place for me to get beer.
a) that's not beer
b) only because you're too lazy to make it yourself
http://www.youtube.com/watch?v=t8878chOvfI
Nattie Ice is the best!!!!
Shop at locally owned stores. Stop sending your capital to Wall Street, Bentonville, and China.
Jobs follow the money.
That's why I buy all my booze, provisions, ammo, hunting clothes all at one old time general store that's been around for over 100 years.
It's funny to see the alarmed look on tourist's faces when they see a bunch of us old farts lined up at the checkout with bottles of JD, tequila, scotch along with boxes of ammo.
I tell em, don't worry, it's not quite tourists season yet.
I buy it all directly from China. Stop supporting evil Wal Mart.
That's nice and quaint, but the reason mom and pop shops went out of business is because they don't offer any more value to the customer, don't necessarily keep a dime in the local economy, and we actually have enough interaction with the owner(s) to know that we don't like them... What's the difference between forcing people to shop local and a stealth local sales tax? We'd cry bloody murder over the latter, but not bat an eye when someone suggests the former...
If mom and pop want any support, then they'll need to provide value. Once it becomes cost prohibitive to ship produce around the globe, then you'll start seeing more localization (it's already happening). However, the field of dreams business model isn't something we should support, regardless of whether mom and pop are the ones clearing the land and building the diamond.
Sure, it sounds good, until you realize that MOST of the crap at "locally owned stores" is made in China.
Locally-made is another story...
Though not quite along the same lines, I once bought feed from a small, local guy. He had his kids doing the mixing, and, well, there were other "important" things to do and I got a batch that was sub par- it resulted in poor performance on my end of things, which in turn reduced production and cost be a bigger customer. I now buy from a larger feed mill a bit further up the road (mostly organic certified feed). My POINT here is that "local" isn't always better. (I could also go into a long recounting of problems I had with a local rental company, but I'll stop here.)
And the TRUTH is that those folks shopping in Wal-Mart wouldn't be able to purchase stuff from "local." I don't kid myself on this point. My food products aren't going to be bought by such shoppers, despite my being "local" (and, I"m operating at the narrowest of margins- with very low overhead). I'm holding on knowing that the Big Boys will continue to get their margins squeezed, pushing up their product costs toward my levels: I'll never compete with them in volume though (but, if they experience economies of scale in reverse they may find that their scale eventually takes them down).
I'm still working and they told us to get prepared for the Christmas rush.
Over.
The 99% are broke. For low and midrange retailers, it's going to be Chrismiss.
Most of the Black Fridays ads for stores have already leaked. That's never happened before this early. The retailers are desperate. Since most are now open on Thanksgiving, I guess they can call it Black Thursday.
http://bfads.net/
http://blackfriday.com/
Black Turkey, just leave the bird in the oven and please shop
If you leave a Black Turkey in the oven too long does it become a Black Swan? :-)
Black Thursday turns into Black Wednesday..... turns into fade to Black.
Working on and before Thanksgiving. Serfs have that to be thankful for. Maybe they will hand out drugs? Thanksgiving bonus ....
UP 15% YTD....must be the strong fundmentals.
If one would try hard enough, it could shirley be explained with rightly rigged technicals, too.
I like shopping at Aldi's for food. It's probably the best bang for your buck.
Cash only there, right?
The will let you use your debit card though (less of a skim for the money changers but probably no more that the cash handling fee)
The good lady now shops at the local farm shops, chicken farmers Aldi then ASDA (Wal-Mart in the UK) in that order.Wilbuuuurrrrr
There's Mr. Ed singing The Empty Feed Bag Blues
https://www.youtube.com/watch?v=gGZwmelwnBU
"Lack of inflation"- interesting.... Walmart is pimping for QE now....
BTW- if "Lack of inflation" is bothering you so much, Walmart, then maybe cutting back on dumping Chinese shit into your stores at below-cost prices might help you out there.....
Not really... it would only exacerbate the problem in that walmart has less margin and, at some price ceiling, can't even complete a sale to a tapped out consumer. If it was more profitable to purchase domestic products, then walmart would do so...
Exactly!
As much as I'm no fan of Wal-Mart I also realize that when one takes off the blinders one can see the real dynamics at play, and it's those dynamics that are/will be affecting us, Wal-Mart or no Wal-Mart.
Economies of scale in reverse...
Drop in gas $ won't help Wally or anybody else when I work on Wally or folks liveing in rental property it's clear they are taped out and it looks like heroin is making a comeback fuck you CIA banks etc responcible
Yup. And, really, when one doesn't have a job what good is there when gas prices drop?
As much as I am no fan of the CIA, banks, or Wal-Mart, there's a more "demonic" force behing all this. It's "growth," we're pretty much tapped out of our ability to "grow." We'd only faked growth for the last few decades. And when this System cannot get its growth then things just go to shit... (those bad actors just add more to the shit pile)
Im surprised the Excuse Roulette wheel didnt land on 'govt shutdown' ...
Don't worry, that will be used plenty in January.
By that time the reasons we should kill Obamacare should be fairly self evident.
Your post is one "care" away from triggering an NSA visit.
I'm wondering what happened to the old-standby- "weather."
You mean all those new jobs in the economic recovery aren't leading to increased sales? The Obama media protectorate will say something like "Wal-Mart shouldn't get your sales anyway since they have no union" to remind us that all is well and the economic recovery is a success.
Walmart knows that it cannot show profit / growth, just like the Fed. "We need moar help". The Fed is here to save you.
Parasite on a dying host; when your only customers are EBT-carrying citizens, margins get tight.
http://www.youtube.com/watch?v=ihutFcORmSc
And people should really realize how big of a canary that Wal-Mart is. The BIGGEST employer. The BIGGEST in retail sales. They've been trying to hold it together for some time now and when they can no longer it's going to be very clear to all that margins were gone a LONG time ago: we've been running on fumes, on bank bailouts and EBT. The management at Wal-Mart is likely shitting bricks. That's a lot of Store to guard against looting and rioting. Maybe there's a way to peer in to this, by watching to see upper management turnover: those that know are likely going to start sneaking out the back door.
Kohls is plunging in premarket too. The green shoots were always poison ivy and hemlock.
http://www.marketwatch.com/story/kohls-slides-premarket-on-profit-guidan...
I wonder how they'll fare next year with the masses having less disposible income because of higher insurance premiums due to Obamacare? It's gonna get real ugly soon.
MOAR !!! MOAR !!! BTFATH...
so, new all time high coming up I presume? ...
First Cisco and then Walmart. I am telling you, this is perfect for a momentum increasing fall....
Nice, bring it on.
Lower prices always... * except ammo.
About the only thing ours carries in 12 ga birdshot, you know-works great for home defense
/sarc
Slightly off topic, a brand new Dick's opened it's doors about an hour from me. As I walked up I notice a sign that says something to the effect "If you are bringing your bow or firearms here for service please check in with us first" then I remembered the shit they pullled after Sandy Hoax, telling those that had AR's on order "no soup for you" and pulled AR's off the shelves.
Needless to say I did not purchase anything there, instead went a mile west to Scheels, where they are avid suppporters of our rights, and spent a couple hundred on various items.
Fuck Dicks
My brother's and I run to the Dicks in Rochester, MN every few months. Every time I go in there I usually make the comment if this is their "going out of business sale". At least during the times I've been in there, there has been more employees then shoppers. This is in a very new built up area (right next to Super Target) in a city of 100,000 that has plenty of wealth (Mayo/IBM/etc).
At least over here iN Wisconsin, I've noticed that both WalMart and Target have pulled some of their "high end" items in the food section. WalMart here has a big competitor in Woodman's (Wisconsin grocery store chain/hugh/very cheap/tons of selection). If only I had a Costco nearby.
Another form of 'channel stuffing'....its days are numbered.
Less revenue..less taxes paid...less revenue for OBAMA..so his deficits will be growing again....will he say he has the fastest increase in the deficit since WWII...or whatever his line is...NOT...he will blame it on someone else...as always
I'd posted a link to an article (from Bloomberg?) that mentioned that Q3 federal revenue was at the highest it's ever been.
But, yeah, whatever... need someone to whip... (not the fact that it's fucked everywhere on the planet- Obama's fault?)
Party pussy shit...
This negative surprise should be sufficient to send US stawks to fresh all time highs.
no problem there...isn't Ghetto-Mart rolling out lines of credit now to the zombies just in time for the HO-lidays? That should work out reeeeaaaal well...LOL
Chinese good losing their luster or people broke? It’s one or the other or both! Ben Bernanke has done a fabulous job of impoverishing the middle class as the gangsters on Wall Street continue to line their pockets with freshly printed money.
Meanwhile, Nordstroms is doing just fine.
I was in a Nords last Saurday ( I pak under the store and use the clean bathrooms, I don't actually buy anything in there), and MAC cosmetics had their newest model (a red head with her hair all splayed out to both sides) standing there in a fixed position like a manikin. I did a double take before I realized she was an actual person. I immediately began to think about Michael Moore's documentary on Detroit when the "have's" hired the "have-nots" to stand around their garden party as manikins (Roger and Me).
See her here http://www.google.com/imgres?imgurl=http://www.musingsofamuse.com/wp-con...
They're gonna get a bail out, arn't they?
http://youtu.be/I5QwKEwo4Bc
What do you think EBT is?
Love that one, it's in my favorites.
Yes, the wonderful and beautiful weather we've been having sure does hamper the shopping by millions for cheap Chinese crap.
Turned on CNBC yesterday. Cramer was on. He was saying how Macy's results were a good indicator the economy was getting healthier.
No, you bald-headed cunt.
Wal-Mart is reality - not a department store on 5th Avenue all Ben Lightyear's mates on Wall St shop at with that cash he is filling their coffers with.
Dumb fuck.
Why not just clock yourself with a ball-peen and be done with it?
Cancel foodstamps and tell me how much 'reality' Wal-Mart has on their books.
Why does no one ask one of these CNBC talking head fucks if the economy has been recovering and getting healthier for 5 years now we should be in fucking economic nirvana by now.
obviously, you guys have never picked up 'Atlas Shrugged'.....you should. then you will understand this simply. the .gov and MSM need each other.
Quit using derogatory, nasty words! You used the six letter "C" word!
VIX lower already on that bullsih news. BTFATH
The fact that they are a shitty company and there aren't any real savings may have a roll to play in their results too.
That doesn't matter to their customers. What matters to their customers is that they are often the only game in town, it is convenient so their fat lazy asses don't have to get out of the car more than once....and they can relieve themselves of their parenting obligation by turning their illegitimate children loose for an hour of unsupervised mayhem while they cruise the isles buying shit they don't need & can't afford anyway.
Maybe they don't have the money to drive all around the city or countryside to "shop". They also, thanks to the wankers in public education, don't know the difference between healthy food and the crap they are fed to fatten them up and dumb them down. FORWARD to SOCIALIST PARADISE with all the SOYLANT GREEN you can eat.
I hate the fuck out of Walmart! I drive out of my way to go to Krogers. A bit more pricy, but nice employees who are helpful and are actully pleasant. About 2 months ago, I had to get some rings for shower curtains. I wandered around for 20 minutes, and asked 3 different employees walking by fast who said it wasn't their department. I went somewhere else and got them. Chinamart sucks, period!
The family that owns Walmart should be lined up against a wall a shot for all the damage they have done to small towns and the USA in general!
But then who will pay for all that anti-union electoral advertising?
"Where's that damn Spanish tile?" - Hank Hill
The family that owns Walmart should be lined up against a wall a shot for all the damage they have done to small towns and the USA in general!
You mean actually brining competition to main street? So you're telling me that mom and pop shops would have fared any better against amazon? To pay less for the same shit AND have it delivered to their doors?
I'll daresay, walmart has been so successful that it has managed to hide decades worth of monetary and fiscal policy failures... it's one of the key mechanisms in hiding dollar devaluation/inflation. Although, I'm not sure the company is worthy of any praise or complaint.
Very few people get it (regarding this subject) as you do.
Declare an outrageous sale and, even if they don't tear themselves to pieces without your help, you can always drop aerosolized fentanyl on them en masse.
A three-weeks stale dinner roll.
In the new normal, earnings don't matter anymore.
It's all BULLISH!
Well, it seems there are becoming more and more "confidence" reports. I figure that'll be the new measure...
In any lasting civilization, the generations that went before and those that were followed, were very solemnly regarded by the living. There were rites, preparations, sacrifices.
Amerikcan Kulture simply denudes the earth, without regard of their own children's children.
No culture deserved to die more than this one; flatulent, loud, adipose, sick to the soul.
WMT to zero.
Well bring it on monkey boy, I'm yer huckleberry...
You'll be a daisy if you do .....
Ever been to India, Hongcha? There's an ancient, lasting civilization for you. Refuse and shit is everywhere and "if you're going to get raped, you might as well enjoy it" spoken by political leaders. The overarching hope of every educated Indian is to get the hell out of India and move to the U.S. Spare me the "U.S. is worse than everyone else" bullshit.
"Amerikcan Kulture simply denudes the earth"
While that may be true I can state that it really hasn't been all that different for the majority of human "cultures" over humankind's history. Sure, there have been pockets of folks, but the overwhelming majority have grown and grown and grown until they've consumed their environments.
As I see it the difference with the US (and most other big nation-states today) is that it has become more efficient at extracting and consuming natural resources: Jevons Paradox.
I'm just hoping that we all come to understand that our mantra of growth, growth and more growth needs to be jettisoned: what we do afterwards I don't know- it's up to us to figure out (w/o having others program us [with BS]).
Amerikan kar kulture, die just die. Your granchildren will curse you, swarm of mealworms you were, denuding the planet.
WMT to zero.
At this rate, most grandchildren will never be born..
BULLISH!
Wonder how much of the drop was from the Food Stamp fiasco where the scum bought all the stuff and used their cards will no balances...I assume WalMart did not get paid for that when the cards were turned back on....they did not use this excuse..but they should have
I have no proof but likewise no doubt that they got paid in full.
I have no proof but likewise no doubt that they got paid in full.
Forget Quantitative Easing, we're moving into Quantum Easing!
BUY MOAR WMT STAWKZ!!!!!!!!
BUY MOAR CSCO STAWKZ!!!!!!!!!!!!!
I have one more empty credit card at zero percent interest to make this happen.
"and the markets continue to be competitive."
And how exactly are the markets competitive, unless of course you are refering to competing for government favoritism? They all have done everything in their power to make sure competition does not exist.
EBT cards being cut by 6% will hammer Wal Mart's bottom line.
<- Wal-Mart will survive with 94% of their bailout intact
<- Wal-Mart needs the full 100% subsidy
"If you like your Wal-Mart, you can keep your Wal-Mart."
Now would be a good time to slap a 30% excise tax on Chinese goods as promoted by some. It would do in the Walmartians and the Walton heirs in one fell swoop... AND show the Chinese who's the boss.
been personally predicting the end of container loads of stuff from Asia, should have happened by now, but the real losers are the deep discounters, the dollar stores, they live off walmarts excess and discontinued lines. and walmart has its own transportation which means they buy fuel at wholesale, most of the deeps do no. there must be ten dollar stores in my city. i feel pretty sure that a lot of this stuff isn't put on a invoice, someone is china fills the container and the buyers line at the POE like that reality show where people buy storage lockers unseen contents. there is a serious global overcapacity in junk. just watch for empty shelf space, thats the key. if walmart cant keep the shelves stocked then trouble is here
I doubt very much that dollar stores account for even 1% of Wal-Mart's volume. They live at the very low end of "stuff".. no appliances, or even medium ticket items.. they seem to be more a part of the underground economy, paying little taxes, excise or otherwise.
My observations (and those of others I know) are that walmart has been having an increasingly hard time keeping its shelves stocked... Probably the last 2 years or so have marked an increase, but the last 6 months or so, there have been quite a few items that are on a different rotation as to when they're stocked (much longer, i.e. from a daily item to a weekly/bi-monthly stocking).
Yes, it's ALL been predicated on cheap and abundant energy. It's how things have always worked: conservation of energy- getting the most using the least amount of energy.
As more an more people's incomes fall they'll be driving less and less. This in turn kills volume in the energy markets (and margins start bleeding- force producers to raise prices?). JIT on-line deliveries, which is how TPTB have been pushing things, are going to increase, further drying up those shelves.
There's more junk than we care to realize. And even what we think isn't junk, IS! (this Fourth-Turning(?) is going to inform us that most of the stuff we've been under the illusion of needing will be more hinderance than help as we seek to continue to exist).
Clearly this would only drag things down hill... trade wars. It was all only a matter of time I suppose. Currency wars are already heating up...
I don't like promoting this sort of thing because it really doesn't deal with the problem, the problem being our inability to generate any more growth (while operating under a system that requires growth).
If you haven't watched Chapter Jackson's "It's Free Swipe Yo EBT" video yet, enjoy the catharsis:
NSFW http://www.youtube.com/watch?v=NzspsovNvII
so any takers in the pool to set the date on the government bailout of walmart?
Walmart may simply be losing sales to online sites like Amazon.
I figure that it'll go more in that direction, but... Wal-Mart does a lot of sales in groceries: I don't think that Amazon.com does groceries.
Perhaps UPS or FedEx can team up with Wal-Mart to do food deliveries? (less and less people able to drive to pick up food- too costly) They're pretty efficient about getting stuff around, and they've got big trucks!
When I walk in one of those stores about the only thing in there that I might possibly want to buy is ammo. And now that's gone.
................zero walmarts in Eritrea