4 Things Brand Marketers Should Watch in Walmart's Earnings
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When Walmart reports first-quarter earnings May 18, it could yield plenty of signs about what’s really happening in the market and how the giant retailer’s reactions will affect the broader world of brands. Here are four big questions brand marketers should hope get answered in Walmart’s pre-recorded earnings call.
Can Walmart continue the positive momentum? Despite growing slower than Amazon — like just about everyone else — Walmart has been improving top-line results over the past two years. It delivered an upside surprise on comparable-store sales growth the prior quarter, its fiscal fourth. This was driven largely by supermarket-size Neighborhood Markets and more aggressive pricing. Walmart’s beat came even as grocery-price deflation (fueled in part by Walmart) ended rival Kroger Co.’s 13-year streak of quarterly comp growth. But last quarter was tougher for everyone.
Was Walmart a victim or a cause? Many retailers — and marketers who supply Walmart — have sung the blues about last quarter. Walmart’s results should show whether it was a fellow victim or a cause. It’s likely both.
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