Economist Howard Davidowitz says the Walmart earnings disaster today shows – “The economy is in collapse.”
Yahoo Finance reported:
Walmart (WMT) reported earnings of $1.24 a share this morning on revenues of $116.2 billion. Analysts had been expecting $1.25 on $118.5 billion. Sales in stores open more than a year declined 0.3% . Walmart also guided lower for the full year citing a “challenging sales and operating environment.” The stock is off sharply and at risk of going negative for the last 52 weeks.
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Those are the numbers, but not the whole story. Walmart is the thermometer of the American economy. Disregard the government data. Jobs and GDP and all the rest are at best inaccurate measures of the economy and at worst flat out corrupt. Walmart is capitalism writ large. The entire organization is focused on nothing but selling goods and services to Americans. It may be an empire in decline, but Walmart sells more than $1 billion worth of merchandise per day in a bad quarter. When Walmart misses estimates, it can only mean one of two things: either Walmart or the American economy is weaker than anyone thought.
“Walmart is a terrific operator… They didn’t suddenly become stupid,” says says Howard Davidowitz, one of the top retail minds in the country. “The economy is in collapse. That’s what’s going on.”
The Dow was off over 200 points today.