Walmart stock has pulled back modestly from record highs ahead of its Q4 results Thursday, after shares jumped into a profit-taking zone last week. The report will be the first under new CEO John Furner, who took the helm of the Dow Jones retailer earlier this month.
Meanwhile, Walmart continues to expand its online sales channels and delivery options as it works to close the gap to Amazon.
FactSet expects Walmart (WMT) earnings to increase nearly 11% to 73 cents per share on 5.5% revenue growth to $190.49 billion.
Analysts predict overall same-store sales growth will slow to 4.3% from 4.7% last year, which would mark the second straight quarter of decelerating comparable sales growth.
Still, Walmart continues to see gains in its online offerings. The retailer’s e-commerce revenue growth has accelerated over the past two quarters, rising 27% in Q3, up from 22% growth in Q1.
In an effort to increase its online presence, Walmart has pursued AI partnerships aimed at widening its shopping channels. Last month, Walmart announced a deal with Gemini and Google, allowing customers to shop Walmart and Sam’s Club in the AI browser. That followed a similar deal with OpenAI and ChatGPT in October.
Goldman Sachs analyst Kate McShane at the time said Walmart could see a sales lift from the partnerships, given the platforms’ large user bases and ability to connect with customers in new ways, The Fly reported.
Additionally, Walmart has expanded its delivery options as it competes with Amazon. Walmart in January partnered with Wing, a unit of Google-parent Alphabet (GOOGL), to bring drone delivery options to 150 new stores over the next year. That’s part of a larger effort to establish a network of over 270 drone delivery locations by 2027.
Under New Management
Furner succeeded Doug McMillon, Walmart CEO since 2016, on Feb. 1. Furner has served as president and CEO of Walmart U.S. since 2019, after working his way up through various positions from his starting role as an hourly associate in 1993.
McMillon officially stepped down on Jan. 31, after nearly 12 years at the helm. He will remain on the board until Walmart’s annual meeting in June to ensure a smooth transition.
Walmart Stock
WMT stock slid 2% Wednesday, leaving shares down more than 5% for the week.
Walmart stock last week surged into a profit-taking zone, which capped a 23% rally following its flat base breakout in late November.
WMT shares hit an all-time high of 134.69 intraday Tuesday before reversing.
Meanwhile, Walmart earlier this month became the first retailer to achieve a $1 trillion market capitalization after transferring to the Nasdaq in December.