A few months ago, Walmart (NYSE: WMT) found itself consigned to the retail junk yard. Too big. Too many more modest sized big box retailers. Amazon (NASDAQ: AMZN). No longer the case. Walmart (NYSE: WMT) stands as the best performing member of the DJIA (DOW) so far this year. Shares have risen 8.25% since the start of 2016. The Dow has sold off to 5.5% to 16,466.30
Several things have moved in Walmart’s favor. The collapse of department stores and specialty retailers among them. Gap (NASDAQ: GAP) sales cratered over the holiday’s. Best Buy’s (NYSE: BBY) met the same fate. Macy’s (NYSE: M) had the worst time, and continues to dig for a turnaround strategy amidst store closures and layoffs. Walmart has done some very modest retrenching, but a decision considered smart closing a tiny number of underperforming stores
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Amazon’s (NASDAQ: AMZN) most recent quarter disappointed Wall St. Its numbers for the fourth quarter of last year were came out better than fine; its future not as much. Revenue rose 22% to $35.7 billion. But:
First Quarter 2016 Guidance
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Net sales are expected to be between $26.5 billion and $29.0 billion, or to grow between 17% and 28% compared with first quarter 2015.
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Operating income is expected to be between $100 million and $700 million, compared with $255 million in first quarter 2015.
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This guidance includes approximately $600 million for stock-based compensation and other operating expense (income), net. It assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.
Unexpected, in the most recent quarter, Walmart:
Comp sales at Walmart U.S. were positive for the fifth consecutive quarter, up 1.5%. Traffic increased 1.7%. Customer experience scores continued to strengthen. Neighborhood Market comps increased approximately 8%, with strong growth from newer stores
Less than many rivals? Not in the eyes of investors
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