evidence that behaviors that changed vastly
during the pandemic, have begun to change
again, or at least normalize.
Data from Home Depot, which also reported
earnings, showed that traffic in stores fell a
bit after a massive rush of DIY projects during
lockdowns. At Walmart, the blistering growth in
online orders has slowed drastically.
Also, the U.S. reported that retail sales in July fell
a seasonal adjusted 1.1%. It was a much larger
drop than the 0.3% decline Wall Street analysts
had expected. According to report, spending
fell at stores that sell clothing, furniture and
sporting goods.
“There is now a very clear sign that the
momentum, which has propelled the sector
over the few months or so, is slowing and that
growth rates are moderating as a result,” said Neil
Saunders, managing director of GlobalData Retail.
“To be clear, this is not catastrophic and it in no
way signals anything near a contraction for retail.”
Saunders noted that the savings rate remains
high, which means “better-off households” still
have a buffer of cash.
It was yet another strong quarter for Walmart,
which has been able to retain customers who
rely on its stores, curbside pickup services, as
well as delivery.
Walmart reported earnings of $4.27 billion, or
$1.52 per share, during the three-month period
ended July 31. Adjusted results were $1.78 per
share, better than the $1.57 per share that analysts
had expected, according to FactSet.
Net profit last year was $6.47 billion, or $1.77
adjusted per share.