Walmart attracts more shoppers seeking to cut spending in Q3, but muted expectations spook investors
Walmart extended its streak of strong quarterly gains heading into the holiday season as its low-prices continue to attract shoppers looking for deals in a tough economic environment
NEW YORK — Walmart extended its streak of strong quarterly gains heading into the holiday season as its low prices attract shoppers looking for deals in a tough economic environment.
The company, based in Bentonville, Arkansas, reported better-than-expected financial results for the period. However, it offered a cautious outlook and said that shoppers pulled back their spending in late October.
Shares fell more than 6%, or $10.74, to $159.91 in early trading Thursday.
The nation's largest retailer is among the first batch of major U.S. retailers to report quarterly results. Industry analysts are dissecting the data, seeking to shed more light on how consumers are feeling as the holiday approaches.
Shoppers have remained resilient, propped up by a strong labor market and steady wages. That's confounded economists and Federal Reserve officials and seems at times at odds with the sour sentiments that Americans themselves have expressed in opinion polls. But higher prices for food and other necessities, though easing, as well as higher borrowing costs for homes and cars, are weighing on household budgets.
Americans cut back on spending in October, ending six straight months of gains and pushing retail sales down 0.1%, the U.S. Commerce Department said this week.
Walmart's CEO Doug McMillon said prices for some groceries are falling, such as dairy, chicken and seafood, but he would like to see that happening in the dry grocery category as well. General merchandise prices are also receding, helping the retailer to roll back prices. Deflation
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