Walmart’s strong Q2 earnings and bullish FY19 outlook shows the retailer is unfazed by mounting recession fears and the US-China trade war. | Source: REUTERS / Lucas Jackson
By CCN Markets: Walmart is bucking the trend by boosting its fiscal 2019 earnings outlook after reporting strong second-quarter sales.
The bullish projections and the rise in Walmart stock this week underscore that the retail giant is unfazed by mounting recession fears and the US-China trade war.
Walmart’s same-store sales for the second quarter ended July 31 rose 2.8%, beating analyst expectations.
The rest of Walmart’s Q2 results were also healthy. Its strong second-quarter performance was a stark contrast to the weak Q2 sales reported by its rivals Macy’s and J.C. Penney.
Moody’s vice president Charlie O’Shea told CNBC that Walmart would likely continue to thrive because its consumers are largely unaffected by stock market volatility and trade tensions.
O’Shea noted that one-third of Walmart shoppers earn more than $100,000 a year, and consumer confidence remains strong. So for now, this segment of shoppers aren’t feeling the squeeze from media-fomented recession hysteria.
O’Shea noted that while the stock market is in flux, “the consumers themselves are still spending.” And obviously, that’s critical to WMT’s bottom line.
“I continue to believe Walmart will set the tone for retail,” says retail analyst at Moody’s Charlie O’Shea. The @SquawkCNBC team reacts to Walmart’s second-quarter earnings beat. https://t.co/Y0BMvQhSvi pic.twitter.com/iC1KaRVIe1
— CNBC (@CNBC) August 15,