Walmart has announced that it will be closing 23 of its retail locations throughout the United States, with the closures set to take place on June 5, 2023. The company cites poor financial performance as the primary reason for the closures, which will include four stores in Chicago and two unique “pick-up only” locations in Illinois and Arkansas. In addition to the store closures, Walmart will also be laying off over 2,000 jobs at five of its US e-commerce warehouses. While the reasons behind each store’s underperformance are largely unknown, factors such as market saturation, the shift towards remote work, the rise of online shopping, and wage hikes impacting profit margins could all contribute to the closures. The company also made a big change and discontinued 24 hour Walmart operations. Walmart’s decision to increase minimum wages from $12 to $14 per hour could also be a factor. This move follows a multi-year trend of Walmart closing a handful of stores across various states each year, with the company citing underperformance without providing specifics. The full list of Walmart store closures set for 2023 includes locations in Arkansas, Georgia, Florida, Hawaii, Illinois, Indiana, Kansas, and Minnesota.
Walmart Stock Shows Positive Start in 2023 Despite Negative Earnings Growth: Market Cap at $401.4B
Walmart (WMT) stock had a positive start on June 5, 2023, opening at $149.45 and closing at $150.10, a gain of 0.87% for the day. The day’s volume was 3,308,984, and Walmart’s market cap was $401.4B. The company’s earnings growth over the past year was negative at -12.44%, but it improved slightly to -1.13% for this year. The company’s revenue growth was positive at +6.73% for the last year, indicating that Walmart is still growing despite the challenges faced by the retail industry. Walmart’s price/sales ratio was 0.64, which is lower than the industry average, indicating that the company’s stock may be undervalued. Walmart’s next reporting date is August 17, 2023, and the EPS forecast for this quarter is $1.68.
Walmart Inc (WMT) Stock Price Predictions for 2023: Analysts Forecast a 12.66% Increase
On June 5, 2023, Walmart Inc (WMT) had a median target price of $169.00, according to 35 analysts offering 12-month price forecasts. This represents a 12.66% increase from the last price of $150.01. The high estimate for WMT’s stock price was $180.00, while the low estimate was $145.00. Investment analysts have maintained a buy rating for WMT since April, according to a consensus among 40 analysts polled. WMT’s current quarter earnings per share were $1.68, with sales of $159.2 billion. The company is set to report its earnings on August 17, 2023. Overall, the outlook for WMT’s stock price appears positive.
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