Sozzi Comments on Wal-Mart's Rapidly Deteriorating Quarter
Sozzi raised a red flag on Wal-Mart's "Savings Catcher" price-comparison initiative.
Because the program was not “guided to on the earnings call, it came in the first month of the quarter, and it has been released to generate buzz with one month of the quarter left to go,” investors should take note, Sozzi said
It seems Sozzi is implying Wal-Mart management introduced Savings Catcher early in the quarter, purposely decided not to include the program in the guidance and -- now with a month to go in the quarter -- is advertising the program to consumers in an effort to spur interest in a dismal quarter.
Wal-Mart may have over-estimated consumer demand for spring home improvement goods, Sozzi's sources said. As a result, the company has started a Black-Friday-like program to “win repair and remodel business following a brutal winter from Home Depot and Lowe's,” the analyst said.
Shares of Wal-Mart are up 0.58 percent to $76.55 in Monday's trading.
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