Walmart Earnings Disaster Exposes a Collapsing Economy: Davidowitz

Walmart Earnings Disaster Exposes a Collapsing Economy: Davidowitz

finance.yahoo.com

Walmart (WMT) reported earnings of $1.24 a share this morning on revenues of $116.2 billion. Analysts had been expecting $1.25 on $118.5 billion. Sales in stores open more than a year declined 0.3%. Walmart also guided lower for the full year citing a "challenging sales and operating environment." The stock is off sharply and at risk of going negative for the last 52 weeks.
Those are the numbers, but not the whole story. Walmart is the thermometer of the American economy. Disregard the government data. Jobs and GDP and all the rest are at best inaccurate measures of the economy and at worst

(visit the link for the full news article)

Hey there my ATS Peers, It looks like Wally World isn't doing so well, even with the EBT Cards etc. So, any thoughts is this just a little downward draught or is this maybe the True Canary in The Coal Mine as to what's really going on with our economy.

I know where I am in SoCal, things just seem to be getting more and more expensive and wages are definitely under enormous pressure. I've had a number of friends have their hours cut back lately (I've lent a few money to get by).

Quote from the article:
" Walmart is capitalism writ large. The entire organization is focused on nothing but selling goods and services to Americans. It may be an empire in decline, but Walmart sells more than $1 billion worth of merchandise per day in a bad quarter. When Walmart misses estimates, it can only mean one of two things: either Walmart or the American economy is weaker than anyone thought."

Oh and Mods, Feel free to move this to the appropriate forum or if this has already been posted then, just fold it in with any existing thread. I did a search, but this doesn't seem to be posted.

Thanks All and Namaste Arjunanda

finance.yahoo.com
(visit the link for the full news article)

This and the Hindenburg omen being triggered, might be up for some interesting economic times.

I think it may also partially be some backlash against Walmart and their business practices, etc. I know I've stopped buying a lot of things at Walmart and instead shop at local supermarkets and stock up periodically at BJs or Costco wholesale clubs.

I guess the government will have to remove Walmart from the picture as a thermometer of the economy. It always seems like the government changes how to judge the state of the economy if something doesn't show increase. I can't figure how they changed the definition of a Depression without most of the country realizing it.

Originally posted by benrl
This and the Hindenburg omen being triggered, might be up for some interesting economic times.

Ummm....yeah and the number of times it has been triggered. Looks to be a hard time coming.

Source

Wall Street's chart gurus have spotted the ominous "Hindenburg Omen" in the stock market today.

Today's sighting is the sixth one in just eight days, and that's pretty significant for folks who believe history repeats itself.

It's extremely rare to see as many Omens occurring together as we've seen over the past 50 days. The last time was prior to the bear market in 2007. The time before that was prior to the bear market in 2000.

This is troubling news for those that want to start their own business. I know a few people on the fence getting ready to open there own businesses and there scared to death to put capital into something that won’t even get off the ground due to the economic conditions.

reply to post by arjunanda


I agree, a more accurate indicator of the economy is how its being spent. Every job you send to china is that much less that stays here, to be spent on things that the people need.

This country is on a serious downward swing, but the people in office will never come out and say it.

We could take back our country and our jobs by simply not buying anything from over seas. Support America, buy american....make things in America.

We can still fix it, there is time.

reply to post by shaneslaughta


Yeah, I agree Shane, Support America and Fellow Americans! I do make a conscious effort to Buy From The Little Guy. We do most of our shopping at The Local Farmer's Markets and both of us avoid "The Big Corporates" as much as possible. Though it's hard with gasoline, healthcare etc.

Thank You for your reply and Peace Arjunanda

reply to post by arjunanda


Off by a penny per share & off a little over two billion in earnings forecasted? With a billion dollars per day sold.
Not a big deal, or a deal at all. Seems theyve got a pretty good numbers forecaster, though!

Originally posted by arjunanda

Walmart Earnings Disaster Exposes a Collapsing Economy: Davidowitz

finance.yahoo.com

Walmart (WMT) reported earnings of $1.24 a share this morning on revenues of $116.2 billion. Analysts had been expecting $1.25 on $118.5 billion. Sales in stores open more than a year declined 0.3%. Walmart also guided lower for the full year citing a "challenging sales and operating environment." The stock is off sharply and at risk of going negative for the last 52 weeks.
Those are the numbers, but not the whole story. Walmart is the thermometer of the American economy. Disregard the government data. Jobs and GDP and all the rest are at best inaccurate measures of the economy and at worst

(visit the link for the full news article)

"Earnings disaster"? Seriously?

Wall Street estimate is off by a penny, their revenues are within 98% of estimates, and one of the most vilified retail chains is down 3/10 of a percent, and this is an "earnings disaster."

Seems like sensationalism and doom porn to me -- call me when their sales are off by 10%, and Target and other chains report the same decline.

reply to post by arjunanda


That's great to hear. Unfortunately its more than a handful of people can do, its going to take a level of commitment and cooperation never before seen in America.

Its going to take a whole lot of people to really work. I try every day to get more people on this wagon.

I have had a few successes, and a lot of failures. Mostly because people dont have the $$ to buy nice things.

I find its cheaper to invest in something once than replace it every few months.

Keep fighting stay strong and never let your commitment waiver.

Good, down with Walmart. Hopefully it collapses and that WinCo place in the other thread can build itself upon Walmart's remains.
I wish they had stores here in my area.

I have talked/shamed everyone I know away from shopping at that awful black hole of a business. People that shop there have no right to complain about the economy or the lack of jobs. Why? It is their fault for supporting the very company that drove away the manufacturing jobs and drove small community based businesses out of business. Buy something at Walmart and IMO you deserve to be a broke ass, living on food stamps loser.

And don't whine about how you can only afford to shop there. It's bull crap and you know it. It's really just that you are too lazy to work to find better deals or go to multiple stores, shop at a farmers market etc etc.

Fact is WinCo pays employees better and has cheaper prices. Farmers markets have better produce and prices. The local butcher not only sells better meat but it is usually less expensive as well. Walmart shoppers are LAZY, they deserve to be treated like the useless eaters TPTB want so badly to kill off.

And don't forget the old adage: Birds of a feather, flock together. www.peopleofwalmart.com...

reply to post by Mamatus


Good for you Mamatus.
I totally agree. I NEVER shop there and guess what?
I'm still alive. Imagine that.

reply to post by arjunanda


I think this is more of a sign of changing consumer ethics.

If anything, this means it's the perfect time to open local businesses. I see them thriving locally while simultaneously seeing people avoid Walmart.

Walmart is down but, retail sales are up for the 4th month in a row. I am suprised Walmart was only off slightly because of all the bad press as of late. That and people more and more shop online. And people are willing to spend a bit more for better service and nicer cleaner store, that is why Publix is beating Walmart up in the areas it is in. Now people have a bit more extra income Walmart and Dollar stores start getting ignored for something better.

Originally posted by peter_kandra
I think it may also partially be some backlash against Walmart and their business practices, etc. I know I've stopped buying a lot of things at Walmart and instead shop at local supermarkets and stock up periodically at BJs or Costco wholesale clubs.

Yeah,
I actually spend more on groceries at a local HEB than I used to spend at Wal-Mart.
I only buy toilet paper and cat litter from Wal-Mat any more.

Mortgage rates jumping more than a point has ended the house price boom in California according to the latest numbers.
Do the math buyers were looking at houses priced $10,000 to $30,000 higher when 30 year interest rates were 3.1%.

If the recovery gets derailed by these higher interest rates the Fed could respond by lowering the prime rate from 3.25% like these other countries did.

Netherlands 3.18 31 Dec 2011 est.
Canada 3.00 31 Dec 2011 est.
Taiwan 2.88 31 Dec 2011 est.
Switzerland 2.72 31 Dec 2011 est.
Finland 2.68 31 Dec 2011 est.
Japan 1.48 31 Dec 2011 est.

I know I know the Fed is devoted to low inflation, we have forever stamps now that guarantee we will never ever see any inflation again even though historically double digit inflation is pretty common.

www.multpl.com...

So the media will be reporting a derailed recovery after a major stock market correction before the Fed reluctantly lowers interest rates and allows inflation to occur.

Actually Young college graduates carrying large student loans would flourish from wage inflation in an overstimulated economy. And nowadays fixed income adjustments kind of sort of keep up with inflation.

If real inflation is 5% and bond yields are 4.5% people still buy bonds rather than keep their cash in the sock drawer.

reply to post by shaneslaughta


the right move would be not too at all...

When the economy is going belly up why would you then?

People seem hell bent on maxing our credit cards and getting major loans, starting a small business when people are being made redundant and the economies faltering and spluttering..

i have no sympathy for people like that.. the writing was on the wall, it was obvious and yet.. you still went and did it and ruined your financial life and ask why?...