Down 18%, Can Walmart Turn Things Around in the Second Half Of 2022?
Walmart (NYSE: WMT) stock suffered its largest single-day decline in over 35 years after reporting first-quarter fiscal 2023 results in May. After rebounding from its 52-week low, Walmart stock tumbled a painful 8% last Tuesday after the company released an update to its second-quarter and fiscal 2023 guidance.
While the stock has bounced back a bit since then, concerns about its outlook remain. Despite higher revenue, Walmart has too much inventory as seasons shift and consumer spending declines on discretionary goods. What's more, higher input costs due to inflation are taking a toll on Walmart's operating margin. Walmart is now guiding for double-digit declines in fiscal 2023 adjusted earnings per share (EPS) and operating income compared to fiscal 2022.
Let's determine if Walmart can turn its business around in the second half of 2022 or if there could be more pain ahead.
Source Fool.com
