The state of retail in one eye-popping earnings growth chart
Reuters/Lucas Jackson
Unsurprisingly, analysts weren't exactly thrilled.
In fact, they basically hacked down their profit forecasts for the entire "Hypermarkets & Super Centers" industry following that announcement.
"As a result of the guidance from Walmart, the sub-industry is now projected to report a decline in earnings in CY 2016 of 5.5%, compared to an expectation of earnings growth of 3.1% last Friday [October 9]," FactSet's John Butters wrote on Friday.
Importantly, it's just the Hypermarkets & Super Centers sub-industry that recorded a significant change in expected earnings growth over the past week. Not the entire retail industry.
"Thus, it appears retail analysts either believe the causes of the lower guidance from Walmart are unique to Walmart, or they are waiting to hear more guidance from other retailers before revising their earnings estimates for CY 2016," Butters suggested.
In any case, check out Butters' dismal chart, which is all the more when you consider the earnings growth in Internet retail, the low-cost bane of brick-and-mortar retailers like Walmart.
FactSet
- 6 reasons why you should visit Ladakh this summer
- TVS iQube gets a new variant priced under ₹1 lakh, ST variant gets a bigger battery
- As English players begin their premature IPL exodus, Gavaskar calls for action against England Cricket Board
- Top 10 destinations for river rafting in India in 2024
- Should you enrol your child in an online university like IGNOU?
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market