Retailer Walmart disappointed investors this morning on its flat sales outlook for 2016. This sent Walmart Stock down by 5% this morning. This is reminiscent of November last year when the stock fell on disappointing earnings outlook.
Walmart Stock Dividend Boosted 2%
While boosting the dividend 2% to bring it to an even $2.00 annually, the company indicated they expect sales growth to be “relatively flat”. The dividend increase places the return on Walmart Stock to 3.1% this morning.
Walmart Closing 269 Stores
Walmart is moving ahead with closing 269 stores worldwide, 154 of which are in the United States as the company focuses on its larger core stores and is moving ahead with its online presence in a direct competition with Amazon.com.
Walmart Losing $12 Billion On Currency Exchange
Walmart indicated that while the high US dollar makes it cheaper to buy goods from abroad that are sold back home, the high US dollar is still cutting into sales by about $12 billion for the year. The high dollar is predicted to impact earnings by $300 million in 2016.
Walmart Raising Minimum Wages and Benefits
As well Walmart last year raised the minimum wage for its employees and is raising the minimum wage to $10 this year and making changes to paid time off which they estimate will cost an additional $1.5 billion in 2016.
Consumers Not Spending Savings At Walmart
Among the forecasts they released was information showing that while lower gas prices may be helping consumers, sales at their Sam’s Club stores were down 2% when gasoline sales were excluded. This is indicating to the company that consumers are not spending the gas savings in their stores.
Walmart Stock Chart
The stock has been in a downturnJan 2015 when it reached $90.97 intraday. By November the stock had collapses 38% from the January high. At present the stock is still down 31% after rising from the November sell-off last year.
The rest of this article is a trade alert and strategy discussion on how to profit from the continued weakness in Walmart Stock………The rest of this Walmart Stock article is for FullyInformed Members.
Trade Alerts As Walmart Stock Declines – Feb 18 2016
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