Profit Warning From Walmart Causes US
Retailers to Lose $100B in Market Value
in After-Hours Trading
Red State,
by
Bob Hoge
Original Article
Posted By: Dreadnought,
7/26/2022 12:24:26 AM
Walmart issued a profit warning Monday, cautioning that its second-quarter operating income would be lower than expected and would show a decline of about 13 percent. The announcement quickly caused other major US retailers’ stocks to plunge, wiping out over $100 billion in stock market value in after-hours trading. (Investopedia explains how after-hours trading works here.) Per Reuters:
Walmart’s stock tumbled over 9% in extended trade, and other big retailers also sold off. Target (TGT.N)fell over 5% and Amazon (AMZN.O) was down about 4%. Meanwhile Costco Wholesale Corp (COST.O), Best Buy (BBY.N), Dollar General (DG.N) and Dollar Tree (DLTR.O) each declined more than 3%. Home Depot (HD.N) fell almost 2%.
This comes as President Biden and Treasury Secretary Janet Yellen continue to deny
Reply 1 - Posted by:
jalo1951 7/26/2022 2:15:49 AM (No. 1228665)
No need to worry. FJB and his Clown Car Administration have assured us that everything is just wonderful. Wink, wink. But remember not to check the definition of inflation, or recession.
14 people like this.
Reply 2 - Posted by:
EJKrausJr 7/26/2022 3:00:38 AM (No. 1228670)
Lame Duck and his Yellen said no recession. People can't spend because money is tight. It's either money for food or money for gasoline. No other choices.
14 people like this.
Reply 3 - Posted by:
mifla 7/26/2022 3:02:58 AM (No. 1228672)
In a related story, the Biden administration has redefined the word "profit".
8 people like this.
Reply 4 - Posted by:
Strike3 7/26/2022 3:11:57 AM (No. 1228679)
The economy is strong and there is no recession. In other news, Rosie O'Donnell is too skinny.
10 people like this.
Reply 5 - Posted by:
franq 7/26/2022 5:57:53 AM (No. 1228737)
I'm no economist, but if you factor in inflated pricing, wouldn't the numbers look even worse? IOW, if they had $100M in revenue, but the monetary value 2 years ago was really $75M, and they STILL had a decline.... Someone with better insight than me please explain.
4 people like this.
Reply 6 - Posted by:
ARKfamily 7/26/2022 6:12:43 AM (No. 1228741)
Some of these retailers jumped on the bandwagon of being woke, supported Biden's efforts etc. so I buy very, very little at Target or Walmart. Only when absolutely necessary. Too bad they weren't more supportive of Donald Trump winning the 2020 election.
11 people like this.
Reply 7 - Posted by:
Rinktum 7/26/2022 6:39:28 AM (No. 1228760)
Joe Biden, the democrat party and every left leaning fool in this country own this disaster. The disturbing reality is that they welcome the chaos and destruction because it is the vehicle they need to usher in the Great Reset. If you ever wondered what a battle of Good versus Evil looks like, look no further. We are in the midst of the mother of all wars for the soul of this nation and ultimately, the world. The men and women behind this mayhem are as evil as they come. They have just transformed what we previously recognized as evil into their present state. They are wealthy individuals living the high life, sitting around conference tables deciding the fate of mankind, but they are no different than the depraved monsters in history like Hitler, Stalin, Lenin. Pol Pot, Mao. In fact, they are worse because under the guise of saving the planet and humanity, they are potting without a doubt the most evil future for the rest of us. These corrupt corporations are willing to suffer for the privilege of being one of them. However, the fools don’t realize that they are just as expendable as the rest of us. When they are of no worth to the cause, they too will be eliminated.
14 people like this.
Reply 8 - Posted by:
judy 7/26/2022 6:47:15 AM (No. 1228768)
When it cost $90 to fill up your gas tank ...it's hurts! Don't worry Biden said gas prices are down...even though it's $2 higher per gallon than when he came in office!! Biden said it's not inflation ...it's normal. I guess it is normal for DC politicians. High gas prices create a domino effect. I wonder what these Big corporations who supported Biden think of him now????
8 people like this.
Glad to see that our woke Walmart boycott is working.
7 people like this.
Reply 10 - Posted by:
Starboard_side 7/26/2022 10:18:46 AM (No. 1228944)
They certainly aren't looking to charter vessels any longer to get their cargo into port like they were a few months ago.
Most warehouses are full, and stores don't need a lot of what is in them.
This create a problem for the railroads who have no place to put the containers either. Truckers can't get chassis because they're already used on an idle container at some large DC (distribution center).
Ocean freight rates are about 50% of what they were a few months ago.
Orders are being cancelled at overseas factories.
Amazing how quickly things can change all due to higher oil and gas prices.
Yet, the United States alone could change that single item by simply resuming the production we have the capacity to produce, and remove the financial limitations forced upon banks.
2 people like this.
Reply 11 - Posted by:
Ribicon 7/26/2022 2:04:46 PM (No. 1229202)
Janet Yellen and Jerome Powell are doing such a fantastic job in helping grind us between the millstones of taxation and inflation that they should remain in their positions for life. Never a word of caution on federal spending; in fact to the contrary, Janet gave her stamp of approval. Don't forget the House of Representatives for doing absolutely nothing but spend us into oblivion while lining their own pockets, and every president (Trump included) who signed off on these obscene budgets. Behold, end-stage capitalism and the collapse of a republic, which we could not keep.
3 people like this.
Reply 12 - Posted by:
Muguy 7/27/2022 9:18:11 AM (No. 1229906)
I admit to being a "smelly Walmart shopper" but I can tell you that people are not buying the over-priced items at Wally World right now,
There was a time when there would be two national brands of peaches, the store brand, and a lesser brand of the same item, but those days are over. They eliminated one national brand, and eliminated the off brand to leave only two choices.
Prices have jump way up for no apparent reason. Fro example, a liter of flavored water has jumped in price twice from 57cents up to 70 cents for the same item-- flavored WATER.
Sam Walton would not be happy. Neither am I having to check my own groceries while idiots point to open registers or play on their phones instead of stocking shelves.
0 people like this.
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