A double whammy for Walmart Friday.
First Reuters reported that Walmart's U.K. arm, Absa, said it found horsemeat in the beef bolognese (and three other sauces) it sells.
As if that wasn't enough, a research note warning of a sales slowdown was enough to spook investors.
Shares of Walmart fell 2% in early trading. But the stock tumbled nearly 4% later in the day after Bloomberg reported there were emails from Walmart execs saying February sales were a "total disaster."
"As with any organization, we often see internal communications that are not entirely accurate, that lack the proper context and represent individual opinions," said a Walmart spokesperson, declining to comment further.
The behemoth has had its share of struggles, many of which center around labor issues. Union anyone?
But love it or hate it, Walmart is still wildly successful. The No.1 retailer in the world continues to post year-over-year profit and sales growth. Walmart reports fourth-quarter earnings before the market opens next Thursday.
Still, any little hint of a slowdown or scandal is enough to spark a lot of chatter among StockTwits traders.
Sad but true.
Very good point. Just the sheer size of Walmart makes it one to watch. It may not quite be "as Walmart goes, so goes retail" but it's a pretty good indicator of whether or not people are shopping.
Haha. Leave it to traderstewie to make me lol. I can't say I've ever bought beef bolognese, or any sauce for that matter, from Walmart... although this was in Absa so maybe the Brits do it differently.
Thanks firstadopter. Way to bring it back to the basics. Walmart may have gotten a bit too bloated for investors. The stock has barely budged over the past three months.
I'm with you Spus. It doesn't get much better than that.
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