Walmart attracts more shoppers seeking to cut spending in Q3, but muted expectations spook
Walmart will report its third-quarter results on Thursday. Investors expect the update to show how American shoppers are coping with prices and economic shifts. The company sits in a strong position, and its size gives a clear view of consumer spending patterns across the country.
Doug McMillon will step down as CEO at the end of January. John Furner will take over. Furner has worked at Walmart for roughly 45 years. The leadership change comes during one of Walmart’s strongest periods. Walmart shares reached a record high last month. The stock later dropped about 8 percent. The company had announced it was working with OpenAI and offering shopping through ChatGPT. Its online and delivery business has grown fast. It has attracted shoppers with higher incomes. It has also gained share among households with middle and low incomes.
The company has faced signs of caution from shoppers. Doug McMillon said in August that some households skipped goods after tariffs pushed up prices.
Walmart’s results help investors understand how Americans react to economic pressure. The company often shows how shoppers respond to higher prices and new promotions.
The broader economy has sent mixed messages. Unemployment remains low. Large companies have laid off thousands. Hiring has slowed. Tariffs have pushed some prices up, but inflation has not risen as sharply as some predicted. Consumer sentiment fell to a record low in November. Americans continued to increase retail spending. This may come from wealthier households who benefited from stock gains. They may slow spending if recent market losses continue.
Analysts expect Walmart to post about $177.5 billion in revenue. That is a 4.7 percent rise from last year, based on Visible Alpha data. Earnings are expected to reach about $0.60 per diluted share, up from $0.58 one year ago. Same-store sales in the United States are forecast to rise about 3.9 percent.
Walmart will release its results and speak with investors before the opening bell on Thursday. Analysts tracked by Visible Alpha remain positive on the stock.
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