This company has annual sales of $485 billion per year. If it was a country, that revenue would make them the 28th largest country in the world, bigger than Austria, Iran, Denmark, Egypt, Israel, and hundreds of other countries. They are the most recognized retailer on the planet. They are the canary in the world coal mine, and the canary is coughing and wheezing. Their operating income in the first quarter plunged by 8.3%, or $500 million. They operate on very thin margins (3.3%), so a $500 million decline is significant. They are a retailer dependent upon the middle and lower classes to sustain their profits.
The steady deterioration of their financial results is a reflection of our dying economy, dying middle class, and dependency on government handouts as the only thing keeping them from experiencing a complete collapse in revenue and profits. Their net income this year will be about the same as it was in 2012. It will be more than $1 billion lower than it was in 2013. If the country was truly experiencing an economic recovery and has added millions of jobs since 2012 why would Wal-Mart revenues and income be stagnant and falling? They wouldn’t be. The entire recovery storyline is a farce. The Wall Street crowd (.1%) has experienced a Federal Reserve created boom, while the Main Street crowd (the 99.9%) continues to face an ongoing and deepening recession.
Walmart Sales, Comps Miss; Operating Income Tumbles; Runs Out Of Scapegoats
Submitted by Tyler Durden on 05/19/2015 07:20 -0400
In what may be the most cryptic press release from Walmart yet, the company just issued an 8-K which consisted all of 5 bullet points, a few charts, and precious little else. Perhaps the reason for the pithy transmission is that WMT had nothing good to say: Revenue declined from $115 billion to $114.8 billion, missing expectations of a jump to $116.2 billion, EPS also missed at $1.03, vs $1.05 expected, operating income tumbled 8.3% from $6.2 billion to $5.7 billion, and finally comp store sales also missed at 1.0%, below the 1.5% expected. With these results, anyone would be short and to the point.
After previously providing extensive explanations for why the massive Apple Sachs Industrial Member member missed, this quarter the firm almost didn’t even bother to scapegoat. This is what it said:
“Consolidated operating income declined 8.3%, due to impacts from currency fluctuations and investments in associate wages & training and e-commerce.”
As if it didn’t even bother to put in the effort to find a reason for the 8.3% plunge in operating income.
Finally, even the company’s guidance was berely there. From Charles Holley, Executive Vice President and CFO, Wal-Mart Stores, Inc.
“Based on our views of the global macro-economic environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2016 earnings per share to range between $1.06 and $1.18. Our second quarter guidance includes the impact of approximately $0.04 per share from our previously announced investments in both U.S. associate wages and training, as well as $0.04 per share from currency.”
Wall Street currently expects a Q2 EPS print of $1.17.
And with this latest bellwether miss, expect the S&P to close at a recorder high today.
Imagine where they would be with SNAP cards, state and local tax subsidies, cheap subsidized labor, and cheap Asian imports. Does this mean we will be losing the POW. I try not to shop there whenever possible largely because I think they do not add to the overall health of the communities they infest, but are actually a net negative influence. Maybe that’s just me.
Bob
with=without
Service really sucks. Quality of products really sucks. Customer deception is a core value. Never shop at a place you don’t trust.
People shopped less last quarter because of intense sunspot activity. This quarter people are staying home because of severe pollen in the air. I expect pent up demand to be unleashed this fall … possibly a trillion dollar quarter for Walmart. Buy their stock NOW (ie, buy the dip).
Your welcome,
Stucky Investment Services
Guess the Chi-Coms should start looking for new distribution centers……anywhere but the USA!USA!USA!. Stick a fork in us….we’re done.
“Service really sucks. ” ——- overthecliff
Indeed. True story.
Doing a lot of housework this spring. We have an iron railing at both the front and back entrances … in bad shape. So, I sanded and scraped off all the old paint. Needed about 6-7 cans of glossy white Rustoleum spray paint. That’s the setup.
Went to Walmart …. the paint is a lot cheaper there, and we’ve been watching our pennies lately.
Anyway … the spray paint is now under LOCK and KEY behind glass!! Someone told us that utes were getting high in the store sniffing paint. Un-fucking real. We waited and then browsed the aisles for 10 minutes looking for a Walmart Associate. No luck. Went to the service desk … other side of the store. They make an announcement over the intercom “Customer needs help in paint department”. We traipse back across the store. We wait another 5-7 minutes. No one shows up. No one!!!
We had a shopping cart full of other stuff; several bags of mulch, 3 cases of Poland Springs water, and other stuff. I said to Ms Freud, “fuck this shit! let’s go!!”. So We left all the shit right there in the paint aisle and left … about $75 worth … No Sale! I said to Ms Freud “It’ll be a cold day in hell before you drag my ass back in this store … EVER!”
Just one story from one dude. Multiply that by thousands across the land. That’s why they suck ass! May they never recover.
The Colorado River is a good metaphor for America’s money flow: The supply of rain has decreased significantly (loans to real people) and the Elite are catching all that falls with their damn crony businesses and banks (Hoover Dam) so that none reaches the river’s delta (We the People) anymore. It’s all going swimmingly for TPTB who want “We The People” (Goyim) to perish from the face of the earth & please their god Gaia (Satan).
robert h siddell jr
Half the time I disagree with you. The other half (like the above post) I have no idea what the fuck you’re talking about.
One of us is an idiot.
Stucky , what is wrong with you ? You got hemorrhoids or something?
I love shopping at Wal-Mart . Just go get what I need and out the door.Best shopping there at night.
Stucky , the reason they keep everything locked down is because of all the Damn theft and stealing that takes place in their stores. Especially in places like God Damn New Jersey.
George Washington is quoted as saying “(Government), like fire, is a dangerous servant and a fearful master.” The same could definitely be said of money. That is perhaps the most fundamental problem in our society. Money has been elevated from a tool, a placeholder for productivity, to our standard MEASURE of not only productivity, but EVERYTHING. And this is flawed value system even if it uses REAL money. Using fiat as a measure is like using a ruler made of silly putty.
Look at it this way:
Why are rocks free, but gravel costs ~$30/ton? Labor, of course, but I will call it human effort, because this strips the connotations and emotional context of “labor”
Let’s take a closer look at “human effort” using a hammer, man’s most basic tool, as an example.
Our societies terms:
1 Hammer = ~$20. Done.
Another way to look at it:
1 Hammer = iron (mined, purified, alloyed with carbon, shaped and tempered), wood (harvested, aged, milled, shaped, treated), engineering (calculate proper center of gravity and radius of gyration, shape to maximize energy efficiency, the brilliant little claw on the back to fix your fuck ups), time (to do all of the above, truly irreplaceable), energy (heat, chemical, human; again irreplaceable), and let us not forget, pure human will–none of this can exist without a sentient being applying its will to create.
Yeah, so I have waxed philosophic to the extreme, but the point is we have much better ways to measure value. Using money as our one and only way to do so is not only intellectually lazy, it also plays right into the hands of our rulers.
Bust them up. That’s what sherman antitrust is for. Making something that’s gotten too big and parasitic go away. We would be a stronger, more prosperous country without walmart, and the trash running it.
Semantics matter. The term anarchy/anarchist has been twisted and subverted. One immediately gets images of angry, hate-filled groups of outcasts building pipe bombs in a basement somewhere. If one simply uses the self-governance, a whole new mental image is formed–more like Pa Cartwright.
Wrong Thread.
Walmart is a truly miserable shopping experience, and every time I go it gets worse. Honestly, I go about twice a year and the continuing decline of what were pretty low standards over the past decade or more is noticeable every time I go. And I’m not sure if this is true around the country but I would guess around 60 or 70 percent of the customers are using EBT. I believe they stay in business for only two reasons: they are the only option many places and they take EBT etc.
The thing that really pisses me off about Wal-mart is their online vs brick & mortar pricing. For example; I need a 50 stack of DVD-R. Priced it at $12.95 at their website with free in-store pickup. Last time I tried the “in-store pickup” it was the same experience Stucky had. No one at the pickup desk, had to flag down an “associate”, they paged for the desk person, message was “they’re just coming off a break, you’ll need to wait 10 minutes”. So I thought, I’ll skip the delay and just buy it off the shelf at the local Wartmart. No dice. Same product, same quantity, only the price is $19.95.
Can someone please logically explain this business practice?