Wal-Mart's Lowered Guidance: A Preview Of Weak Retail Earnings?

On Thursday, The Street published an article by Brian Sozzi titled, "Disturbing News From Walmart Could Signal Retail Shockwaves."

Within the report, Sozzi wrote that Wal-Mart Stores, Inc. WMT ugly guidance should be a “wake up call” for for retail investors.

On Wednesday, Wal-Mart hosted its annual investor conference. The company lowered its 2014 sales outlook, and projected that operating income will be flat in 2015.

Moreover, Wal-Mart lowered its EPS guidance in August by $0.25 per share.

Sozzi argues that Wal-Mart’s downbeat guidance was likely affected by the greater pricing competition from e-commerce and is potentially a sign that other retailers will report weaker than expected earnings as well.

Retail stocks are set to begin reporting earnings in mid-November.

Shares of Wal-Mart were last trading at $73.70, down 2 percent.

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Posted In: Analyst ColorNewsRetail SalesAnalyst RatingsMediaBrian SozziThe Street
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