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As large-format grocery & general merchandise retailer stocks’ Q3 earnings season wraps, let's dig into this quarter's best and worst performers, including Walmart (NYSE:WMT) and its peers.
Big-box retailers operate large stores that sell groceries and general merchandise at highly competitive prices. Because of their scale and resulting purchasing power, these big-box retailers–with annual sales in the tens to hundreds of billions of dollars–are able to get attractive volume discounts and sell at often the lowest prices. While e-commerce is a threat, these retailers have been able to weather the storm by either providing a unique in-store shopping experience or by reinvesting their hefty profits into omnichannel investments.
The 4 large-format grocery & general merchandise retailer stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 0.6% Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but large-format grocery & general merchandise retailer stocks held their ground better than others, with the share prices up 6.4% on average since the previous earnings results.
Walmart (NYSE:WMT)
Known for its large-format Supercenters, Walmart (NYSE:WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.
Walmart reported revenues of $160.8 billion, up 5.2% year on year, topping analyst expectations by 1.4%. It was a decent quarter for the company, with revenue outperforming Wall Street's estimates, driven by better-than-expected same-store sales growth. On the other hand, its full-year adjusted EPS forecast missed analysts' expectations.
Walmart pulled off the biggest analyst estimates beat of the whole group. The stock is down 5.1% since the results and currently trades at $161.09.
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Best Q3: Target (NYSE:TGT)
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.
Target reported revenues of $25.4 billion, down 4.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Target had the slowest revenue growth among its peers. The stock is up 28.1% since the results and currently trades at $141.8.