Via
III Percent Patriots
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 flat out corrupt. 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.
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