Diamonds and Dogs

5/18/23

Walmart's (WMT) looks good up 2% following earnings and encouraging guidance. The world's largest retailer reported first-quarter same-store sales growth that beat expectations as consumers traded down from traditional supermarkets and slowed purchases of discretionary merchandise from rivals like Target. Walmart also raised its full-year earnings per share forecast to a range of $6.10-$6.20 per share, up from its prior expectations for earnings to come in at $5.95-$6.05 per share in its fiscal year.

Target (TGT) is down 3% after disappointing earnings the other day. Target had a disappointing online demand, but a bigger problem has become violence at stores and a problem called, "shrinkage" is an industry term for lost inventory or theft either in stores or along the supply chain heading to the stores. Target expects to shrinkage to cost at least $0.5 billion this year.Other retailers during the holidays including TJX Cos. (TJX) and Dollar General (DG) had similar problems.