Walmart's US income grew 4% last quarter. Why do you think Walmart is going down just because of an oil spike? They have economy of scale advantages that allow them to squeeze suppliers and/or pass costs onto customers. Even back in 2008 Walmart was raking in the profits:SteveO wrote:Oil prices are down by a third since 2008, but that can't last. Walmart's US growth has gone flat. The next big oil shock is going to take them down along with a lot of other parts of the economy.
The world food crisis: what is behind it and what we can do(October 23, 2008)
Higher commodities prices, specifically for corn, wheat, milk, and soy beans, coupled with rising energy costs, are the main reason that food prices are rising faster than normal rates. A dozen eggs costs 50 cents more than last year, a loaf of bread, 20 cents more. Most small retailers operate on a slim margin of 1-3% and cannot absorb these cost increases; as a result costs are being passed onto consumers. However, because they make their money on high volume and low margins—and because they can source directly from producers—larger chains and big box stores have posted sizable profits with the food crisis. Safeway's 2007 annual report showed a 15.7% increase in net income between 2006 and 2007. This even bests U.K.-based Tesco, a recent, high-power arrival on the U.S. market, whose profits rose by a record 11.8% percent last year. Other major retailers, such as Wal-Mart, also say that food sales are driving their profit increases.
Walmart reports Q4 underlying EPS of $1.60, Fiscal 2014 underlying EPS of $5.11(Fiscal 2014)
* Walmart U.S., with operating income growth of 4.0 percent, was the major contributor to Walmart's underlying profit growth.
* Walmart U.S. will increase capital expenditures for fiscal 2015.
Outcast_Searcher wrote:I think Walmart should focus FIRST on things like having their shelves well stocked and their employees well trained. They're a retailer, not vehicle designers.
Users browsing this forum: Peak_Yeast and 67 guests