Walmart Retreats From Record as Investors Poke Holes in Earnings
- Gross margin declines offset strong quarterly sales growth
- Retailer is still outperforming most of its competitors
A Walmart Inc. store in Burbank, California, U.S..
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Investors in the retail industry are a tough crowd. Just ask Walmart Inc., which matched sales growth estimates, raised its forecast -- and watched its shares drift lower in midday trading as analysts picked over the numbers.
The shares fell as much as 1.2% on Thursday afternoon after earlier hitting a record high. What changed? After all, the key gauge of same-store sales was in line with expectations -- the 21st consecutive gain. Both the number of customers and the size of their average orders were up, fueling the growth.