Walmart Has ‘A Lot of Trepidation’ About Economy, as Consumers Feel ‘Very Pressured’

Contact Your Elected Officials
The Epoch Times Header

Walmart is concerned about the U.S. economic outlook this year after its latest earnings projections showed that consumers were under heavy pressure.

Shares of the retail giant rose 0.4 percent after the big-box retailer gave its weaker-than-expected outlook for the year ahead.

The world’s largest retailer saw its full-year earnings forecast (pdf) fall below estimates, as tight consumer spending due to high inflation, may lead to pressure on profit margins.

“The consumer is still very pressured,” Walmart CFO John David Rainey told CNBC.

“And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year.”

Skyrocketing consumer, rental, and food prices are raising fears among investors that the Federal Reserve will continue to hike borrowing rates to slow the U.S. economy, which may lead to a recession by the end of 2023.

Last week Loretta Mester, president of the Federal Reserve Bank of Cleveland, said that more rate hikes may be necessary to cool down inflation.

Retail Giant Fends Off Price Hikes By Suppliers

The retailer continues to protect its customer base, by combating attempts by its product suppliers to hike prices.

“There’s still a lot of trepidation and uncertainty with the economic outlook. Balance sheets are continuing to get thinner, savings rate is roughly half of what it was at a pre-pandemic level and we’ve not been in a situation like this where the Fed is raising at the rate that it does,” Rainey told Reuters in a separate interview.

“So, that makes us cautious on the economic outlook because we simply don’t know what we don’t know,” the CFO added.

Meanwhile, Walmart CEO Doug McMillon, told investors on a post-earnings call, that he expects that “stubborn inflation” regarding dry goods, would have a “mixed” impact this year.

By Bryan Jung

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Trump’s Middle East Triumph is Worth Celebrating Even As Peace Remains Elusive 

President Trump’s bold foreign policy defies globalist appeasement, showcasing unwavering American strength and decisive leadership on the world stage.

Are conservatives fighting a fiction of woke?

Wokery, it hurts to say it, is too disorganized to have an organized cosmology or doctrine of metaphysical belief.

Illinois Democrat Offenders Reveal Party

The crime of J.B Pritzker and Brandon Johnson in this episode of American history is called subversion at the least , but could be as serious as treason.

Inside the Public School Librarian Jihad to Keep Transgender Propaganda on Shelves

Public school librarians are doing all they can to keep child tranny propaganda flowing directly into the malleable minds of their charges.

Five Reasons Why The Latest Czech Elections Were So Important

Populist-nationalist politician Andrej Babis is poised to return to the premiership after his party's victory. Here are 5 reasons why this is so important.

New York AG Letitia James Indicted on Federal Charges

New York Attorney General Letitia James was indicted by a grand jury on federal charges, according to an indictment on unsealed on Thursday.

6 Ways Vaccine Policy Has Changed Under RFK Jr.

Health Sec RFK, Jr. and officials at the HHS changed recommendations and policies for multiple vaccines, including shots against COVID-19 and measles.

Journalists Recount Antifa Violence in Roundtable With Trump

President Trump met at the White House with journalists attacked by the newly designated terrorist group Antifa, joined by Cabinet officials for a roundtable.

IRS to Furlough 34,000 Employees as Government Shutdown Halts Treasury Operations

The IRS said in an emergency message to staff that it will furlough more than 34,000 employees starting on Oct. 8 due to the government shutdown.

Trump Says He May Invoke Insurrection Act in Portland If Necessary

President Donald Trump on Oct. 6 said he may consider invoking the Insurrection Act in Portland, Oregon, if necessary.

Trump: All Medium, Heavy Duty Trucks Entering US Will See 25 Percent Tariff on Nov. 1

President Trump announced on Monday that all medium and heavy-duty trucks entering the United States will see a 25 percent tariff starting on Nov. 1.

Treasury Names Social Security Commissioner as CEO of IRS

Treasury Sec. Scott Bessent announced that Frank Bisignano, the head of the Social Security Administration (SSA), will also serve as CEO of the IRS.

Agencies Terminated, Descoped 94 Wasteful Contracts With $8.5 Billion Ceiling Value, Says DOGE

Various federal government agencies have terminated and descoped 94 wasteful contracts over the past five days, DOGE said in an Oct. 4 post on X.
spot_img

Related Articles

Popular Categories

MAGA Business Central