There are very clear winners and losers emerging as retail earnings reports continue to shed light on the sector.
Wal-Mart is the clear disappointment, down nearly 3 percent to a new 52-week low, the only S&P 500 company at a new low at the open. Shares are down 18 percent year to date.
The focus has been on Wal-Mart's lower guidance for the year, but the company highlighted many positives:
- U.S. same store sales up 1.5 percent
- Dividend a healthy 2.8 percent
- Continuing to buy back stock, $1 billion during Q1
- E-commerce sales up 16 percent year over year, a slight deceleration but still strong
And if you read the report carefully there are several reasons guidance has been lowered, only a couple due to lower sales:
- Investment in wages and training
- Investment in e-commerce
- Forex impact
- Weaker pharmacy margins (a negative surprise)