Know The Difference Minute

Walmart reported quarterly earnings today and while it easily topped expectations, it also gave a weaker-than-expected outlook for the year ahead. 

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As goes Walmart…
Welcome to the Know the Difference Minute for Tuesday, February 21st.
Walmart is America’s biggest grocer. By a mile. Fiscal year 2022 sales of $467 billion. Nearly 60% of its annual revenue comes from grocery, a category that drives foot traffic and is recession-proof.
At least they hope so. Walmart reported quarterly earnings today and while it easily topped expectations, it also gave a weaker-than-expected outlook for the year ahead. They’re picking up price-sensitive shoppers, but they aren’t shopping for big-ticket items or electronics and home décor. Instead, cheaper groceries as consumers battle food inflation—which Walmart’s CEO calls the most stubborn of all categories.
Between Walmart’s weak guidance and Home Depot missing revenue expectations for the first time since 2019, stocks dropped early today as worries build that inflation will remain higher for longer—and the Fed could be forced to act forcefully to counter that.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.