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Page added on February 21, 2013
Wal-Mart: “Families Are Adjusting To A Reduced Paycheck And Increased Gas Prices”
Moment ago Wal-Mart reported a top-line miss, a bottom line beat, a dividend hike and a rather subdued full year forecast ($5.20-$5.40 on Exp. of $5.39), and nobody cared. The only thing that algos and carbon-based lifeforms alike honed in on, was the recap of the most recent 13 week period, to see if WMT was only kidding when it said that February sales, which obviously were not part of Q4 results, were a “total disaster.” The reason WMT’s stock is not doing to well in the pre-market is that they did not like what they found.
Here is the key section:
“We are confident that our low prices will continue to resonate, as families adjust to a reduced paycheck and increased gas prices,” Simon said. “We see the underlying health of the Walmart U.S. business is sound, and sales trends are similar to what we’ve demonstrated in the last few quarters. However, February sales started slower than planned, due in large part, to the delay in income tax refunds. We began seeing increased tax refund check activity late last week in our stores, resulting in a more normalized weekly sales pattern for this time of the year. Due to the slower sales rate in the first few weeks of this year’s first quarter, we are forecasting comp sales for the 13-week period from Jan. 26 to Apr. 26, 2013 to be around flat. We continue to monitor economic conditions that can impact our sales, such as rising fuel prices, changes in inflation and the payroll tax increase.”
One can hope that all the other retailers in the US, which are just as dependant on the consumer’s discretionary revenue stream which is now certifiably less, will adjust just as well.
10 Comments on "Wal-Mart: “Families Are Adjusting To A Reduced Paycheck And Increased Gas Prices”"
BillT on Thu, 21st Feb 2013 1:29 pm
Adjust downward or in other word’s contract. The new normal for retail.
TIKIMAN on Thu, 21st Feb 2013 1:30 pm
Heh.
Just remember if you graduated high school you are over qualified to work at wal mart. Anyone with an education would know that they fuck over their employees with low wages and shitty hours. I feel the need to shower after I walk into that store, which I am happy to say, is rare. Plus I am always armed.
SMN Jay on Thu, 21st Feb 2013 2:30 pm
As if they didn’t understand that, when their “agreed upon” class of container ship didn’t make it in 2007, simply being too late to conform with market conditions……
GregT on Thu, 21st Feb 2013 3:28 pm
Yes BillT, contraction is the new normal. The big question is; How long can contraction continue before collapse? I would answer; Much less longer than most people realize.
Plantagenet on Thu, 21st Feb 2013 6:05 pm
This is the WORST RECOVERY EVER. The sluggish GDP growth since 2009 is even worse then seen in the Great Depression after the 1929 collapse.
GregT on Thu, 21st Feb 2013 6:55 pm
Plant,
What recovery? Without the trillions from QE 1, 2 and 3, the economy would have collapsed already. The US is living on “borrowed” time. ( Pun intended )
Bor on Thu, 21st Feb 2013 7:32 pm
Recovery? Are you kidding?.. The USA economy looks like 350 lb overweight diabetic man living on borrowed money and time. The heart attack can kill him any moment. Some recovery…
dave thompson on Thu, 21st Feb 2013 8:22 pm
Chart: 6 Walmart Heirs Hold More Wealth Than 42% of Americans …
http://www.motherjones.com/…/walmart-heirs-waltons-wealth-inc...
Kenz300 on Thu, 21st Feb 2013 9:48 pm
High oil prices increase transportation costs and reduce disposable income that can be spent on other things.
We will all need to ADJUST to higher fuel prices. How we adjust is the question.
Some people will be forced to walk more or ride a bicycle. Others will choose to take mass transit if it is available.
Those that need a car can choose a more fuel efficient vehicle or one that uses an alternative sources of fuel.
Electric, biofuel, flex-fuel, CNG and LNG are all options that people are starting to turn to.
Even the most stubborn people will begin to change their energy consumption when the price gets high enough. Choosing between fuel and groceries most people will figure out how to reduce their fuel use.
Now if only politicians would change from focusing on the automobile and begin to focus on people. We need more safe walking and bicycle paths that connect schools, businesses, homes and work. We need more and better mass transit.
Without options people are stuck in their cars.
GregT on Thu, 21st Feb 2013 11:35 pm
Transportation is the least of our worries. It is not required for survival.
Food, water, shelter and security are basic human needs. Until we we have a plan in place for the basics, everything else is irrelevant.