Yahoo Finance Walmart (WMT) Unveils Walmart+ Weekend Event to Boost Growth
Walmart Inc. WMT announced that it is hosting Walmart+ Weekend — a digital event for Walmart+ members. The three-day event that will start on Jun 2 will offer huge savings on top brands exclusively to Walmart+ members.
Walmart will offer products from several categories, including electronics, apparel, for the home, toys and school and art supplies, among others. The company highlighted that Walmart+ members would have exclusive access to discounts on thousands of the hottest summer products ranging from Shark vacuum to a Minnie Mouse playhouse and Samsung Galaxy S7. Consumers can avail discounts on trendyproducts, including PlayStation 5 consoles, Pit Boss Pellet Grills and Gateway Laptops. Management highlighted that top-selling items would be limited and fast-selling.
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Apart from the discounts, people who decide to sign up across Walmart stores during the event to become Walmart+ members will be offered a $20 promo code off on their next online order. Along with savings, Walmart+ members also enjoy the perk of free shipping during Walmart+ Weekend and otherwise. The company is taking a new approach to promote Walmart+ Weekend, like sharing videos from celebrity comedians.
The Walmart+ membership is priced at $12.95 per month or $98 annually. The company highlighted that, Walmart+ raised its fuel discount at the end of April, giving members up to 10 cents off each gallon if they pump over 14,000 stations across the nation. Walmart+ membership also offers unlimited free grocery deliveries from stores and Scan & Go capabilities to aid a convenient checkout experience across stores. Apart from this, Walmart+ membership also provides six months of free Spotify Premium music.
We note that Walmart received impressive feedback from Walmart+ members on early access to its Black Friday events. Incidentally, management is optimistic about the upcoming Walmart+ Weekend.
What Else Should You Know?
The Zacks Rank #4 (Sell) company has been bearing the brunt of increased cost inflation in the U.S. segment. Recently, Walmart released its first-quarter fiscal 2023 results, wherein the bottom line declined year over year and missed the Zacks Consensus Estimate. The soft earnings results were a result of the unusual economic landscape, with U.S. inflation levels (especially food and fuel) creating greater-than-expected pressure on margins and operating expenses.
Moreover, management slashed its fiscal 2023 operating income and bottom-line guidance. Walmart now expects the consolidated operating income to decline around 1% at constant currency (cc) and remain flat, excluding divestitures. The consolidated operating income was previously expected to grow nearly 3% at cc and at a greater rate than net sales, excluding divestitures. Management envisions earnings per share (EPS) to decline nearly 1% in fiscal 2023 and remain flat year over year, excluding divestitures. Earlier, the EPS was likely to grow in the mid-single-digit range. Excluding divestitures, it was expected to rise 5-6% in fiscal 2023.
Shares of the company have dropped 9.2% so far this year against the industry’s 3.9% growth.
Top 3 Retail Bets
Here are three better-ranked stocks – The Kroger Co. KR, Target Corporation TGT and Costco Wholesale Corporation COST.
Kroger, a renowned supermarket company, carries a Zacks Rank #2 (Buy). The company has an expected EPS growth rate of 9.9% for three to five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales suggests growth of 3.2% from the year-ago period. KR has a trailing four-quarter earnings surprise of 22.1%, on average.
Target, which operates as a general merchandise retailer, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 21.3%, on average.
The Zacks Consensus Estimate for Target’s current financial-year sales suggests growth of 3.9% from the year-ago period. TGT has an expected EPS growth rate of 16.5% for three to five years.
Costco, the operator of membership warehouses, also holds a Zacks Rank #2. Costco has a trailing four-quarter earnings surprise of 13.3%, on average. The company has an expected EPS growth rate of 9.1% for three to five years.
The Zacks Consensus Estimate for COST’s current financial-year sales suggests growth of nearly 14% from the year-ago period.
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