What is Wal-Mart Really Saying?
Yesterday investors initially shrugged off Wal-Mart's weak earnings news, partly because strong overall retail sales for April were announced at around the same time and weren't half bad. But during the day investors became increasingly worried that Wal-Mart was signaling a slowing in consumer spending -- well before it would show up in government tallies.
Barry Ritholtz, chief market strategist at Maxim Group, nailed the reason for worry in his amusing riff on his web site, "Rain in the Spring. Who'da thunk it?"
It will make you chuckle -- and think -- at the same time.
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My question is, why did Target's earnings surpass expectations while Wal-Mart missed? Target's customers didn't let the cold and rain stop them from shopping? Barry Ritholz brings up a very valid point about how companies try to make excuses for their shortcomings. There must be a deeper problem at Wal-Mart.
Posted by: Karyn McCormack at May 13, 2005 08:21 PM
Walmart will get going soon. It has plans to
expand overseas. Get out of the way----nobody can hold them back as the baby boomers start looking post retirement jobs and carry their
previous job benefits so they can work for less.
Posted by: Don V Johnson at May 16, 2005 09:22 PM