Walmart’s stock has recently experienced a slight pullback from its peak as it heads into its Q4 earnings report, scheduled for Thursday. This will mark the first financial disclosure under the leadership of new CEO John Furner, who took over this month, succeeding Doug McMillon after nearly 12 years of leadership.
Amid this leadership transition, Walmart is intensifying its efforts in the e-commerce space, striving to catch up with Amazon’s market dominance. The company has been enhancing its delivery methods and online shopping experiences to attract a broader customer base.
Analysts at FactSet are forecasting Walmart’s earnings to rise nearly 11% to 73 cents per share, with revenue projected to grow by 5.5% to approximately $190.49 billion. However, same-store sales growth is anticipated to decelerate slightly to 4.3%, down from 4.7% last year. This would signify another quarter where the growth rate has softened, reflecting broader trends in consumer spending.
In the realm of digital sales, Walmart is witnessing impressive growth in its e-commerce segment. The company reported a 27% increase in online revenue last quarter, a notable uptick from earlier in the year. This trend highlights Walmart’s successful strategy to leverage digital platforms and meet changing consumer preferences.
To further bolster its online presence, Walmart has forged significant partnerships in artificial intelligence. Recently, a collaboration with Google and its AI tool Gemini was announced, allowing users to shop Walmart and Sam’s Club through an AI platform. This follows an earlier partnership with OpenAI, signaling Walmart’s commitment to integrating cutting-edge technology into its retail strategy. Experts, such as Goldman Sachs analyst Kate McShane, suggest these alliances could enhance sales by tapping into vast user bases and innovative engagement methods.
Additionally, Walmart is expanding its delivery capabilities to remain competitive. This includes plans to implement drone delivery services at 150 sites over the next year, part of a larger goal to establish over 270 drone delivery locations by 2027, in partnership with Wing, a subsidiary of Alphabet.
As for the stock performance, WMT shares are currently down about 5% for the week, having recently surged significantly before entering a profit-taking phase. Last week, they reached an intraday high of 134.69, marking a 23% increase since late November. Notably, Walmart also made headlines as the first retailer to achieve a market capitalization of $1 trillion after its shift to the Nasdaq in December.
This period of change, driven by strategic investments in technology and operations, positions Walmart to navigate the evolving retail landscape effectively as it seeks to enhance its competitive edge.
