Walmart Falls After Forecasting Earnings Drop, More Spending

 

Matthew Boyle, Bloomberg

via Yahoo Finance - February 18, 2021

 

(Bloomberg) -- Walmart Inc. fell after forecasting a slowdown in sales and profit for the year, plus billions of additional spending on worker salaries, automation and other technology.

 

The retailer said Thursday earnings per share will decline slightly in the fiscal year that just started, though will be flat or slightly up when excluding divestitures. Although U.S. comparable sales will stay positive this year, they’ll rise in the low-single-digits, below the recent breakneck rate but on pace with estimates.

 

Walmart shares fell 5.6% at 9:30 a.m. in New York. Over the past 12 months, the shares have outpaced the S&P 500 but have trailed Target Corp.

 

After an unprecedented year marked by shortages of staples like toilet paper, surging web traffic and constant shifts in demand from quarantined consumers, Walmart expects a return to more normal business patterns in 2021. But it won’t be business as usual as the retailer is pushing into new areas like advertising and web marketplaces, looking to capitalize on the connections it already has with shoppers. Those moves, along with the wage increase, will cost money though, and there’s no guarantee they will all pan out.

 

Wage Hikes ...

 

Follow Along With Walmart’s Fourth-Quarter Earnings Call ...

 

Tech Spending ...

 

Solid Holiday ...

 

more

https://finance.yahoo.com/news/walmart-falls-forecasting-earnings-drop-123730051.html