RETAIL GIANT STRUGGLES THROUGH “RECOVERY”
Walmart released its latest financial data this week and the results were not encouraging – for the company or the broader U.S. economy.
The world’s largest retailer announced revenue of $120.1 billion in the second quarter of its 2015 fiscal year (a 2.8 increase from the previous year) – with income of $4.1 billion (a 0.6 percent increase). Those numbers modestly exceeded analysts expectations, but the company revised its growth downward for the future – which is surprising when you consider the American consumer economy was supposed to be exploding with all this pent-up growth from a first quarter freeze out.
“As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart U.S. and Sam’s Club, but both reported flat comp sales,” the company’s CEO stated. ”Stronger sales in the U.S. businesses would’ve also helped our profit performance.”
Walmart also blamed “higher U.S. health care costs” for lowering its outlook for future growth.
Which figures …
We’ve said it before and we’ll say it again: We want the economy to grow. Hell, we need the economy to grow (advertising pays the bills, yo). And we don’t care who gets the political credit for economic growth.
But if anyone thinks the federal government’s crony capitalist monetary policy, excessive taxation and regulation, out-of-control bureaucratic growth and ongoing incentivization of dependency is going to do the trick … they are sorely mistaken.