What Walmart Doesn't Know Should Worry Us All
The biggest US retailer beat earnings estimates but remains cautious on the path forward for consumers and the economy.
Will they shop till they drop?
Photographer: Joe Raedle/Getty Images North AmericaWalmart Inc. is girding for another rough and uncertain year. As a company that traditionally excels during tough economic environments, that should make you nervous about how consumers might fare this year but not about whether Walmart will thrive.
The company’s fourth-quarter results, which include the all-important holiday season, exceeded expectations on Tuesday. Its outlook for the year though disappointed, signaling a wariness about the pandemic-recovery economy. In a call with investors, Chief Financial Officer John Rainey said the company is being cautious because “there’s just a lot we don’t know.”
“We could tilt into a recession. We don't know what happens to consumer spending. We don't know what happens to layoffs, household income,” he said. “We're so early into the year and there's a lot of unknowns right now.”