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Walmart Inc. shares advanced 6.1% Thursday, continuing a winning streak this year that has lifted it about 21% and put it neck-and-neck with shares of a highflying tech favorite: Amazon.com Inc.
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The company said Thursday that sales rose in the second quarter and it even raised its profit forecasts for the year, making it one of the S&P 500’s top gainers. Its shares recorded the biggest jump since August 2018.
Walmart has now narrowly surpassed Amazon’s advance year to date. This is notable to some because Amazon is a favorite for investors seeking fast-growing companies.
Varying Fates
Walmart’s jump also highlights the varying fates of many retailers in the U.S. This was on display this morning after strong retail-sales data. Though American shoppers are providing a boost to the U.S. economy, their spending isn’t lifting shares of many retailers.
Retailers that have been able to adapt to changing tastes among consumers have done well, while others have fared poorly.
For example, shares of Ralph Lauren Corp. fell 3.2% in trading Thursday, while Tiffany & Co. fell about 2.6%. Tapestry Inc. dropped 22% after it lowered earnings guidance, making it the S&P 500’s biggest loser on Thursday.
The retailers’ losses are even more striking because major U.S. stock indexes rebounded Thursday after steep declines Wednesday.
Other retailers like Nordstrom Inc., Gap Inc. and Foot Locker Inc. are scheduled to report earnings next week, and winners and losers among retail heavyweights will likely become clearer.
Source: WSJ
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