Walmart is scheduled to announce its fiscal third-quarter earnings before the market opens on Tuesday, providing a crucial update on its sales performance and insights into U.S. consumer spending as the holiday shopping season approaches.
Analysts from LSEG predict that Walmart will report earnings per share of 53 cents and revenue of approximately $167.72 billion. This announcement will be closely watched by investors seeking to understand consumer sentiment and the overall economic outlook during this pivotal retail period.
As retailers gear up for the holidays, they face a complex landscape. While inflation has begun to ease, with falling gas prices and stabilizing grocery costs, concerns linger over potential price increases due to President-elect Donald Trump’s proposed tariffs on imports from China and other nations. Additionally, the holiday shopping season is notably shorter this year, and unseasonably warm weather in parts of the U.S. could impact sales.
The National Retail Federation projects a modest increase in holiday spending, estimating a rise of 2.5% to 3.5% for November and December compared to last year, with total spending expected to fall between $979.5 billion and $989 billion. This forecast is lower than the 3.9% increase seen during the previous holiday season, which recorded spending of $955.6 billion.
Walmart has been benefiting from its extensive grocery operations and a surge in online sales. In August, the retailer raised its full-year sales forecast, anticipating a growth rate of 3.75% to 4.75% for the year, with adjusted earnings projected between $2.35 and $2.43 per share. However, the company’s recent guidance for third-quarter adjusted earnings, estimated at 51 to 52 cents per share, fell short of earlier investor expectations.
As the retail landscape evolves, Walmart’s performance will serve as a bellwether for the broader market, reflecting both consumer confidence and the challenges that lie ahead in the coming months.
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