Walmart’s Quarter May Be Quiet, but the Story Is Getting Stronger

 

Lale Akoner, global market analyst at eToro says: “Walmart reports tomorrow, and while the headline numbers may not shock, approximately 3.9% sales growth, earnings per share around $0.59, and cautious guidance for the second quarter, the underlying story is quietly gaining strength. Overall, investors are looking for a low-drama earnings announcement, but that underestimates how well Walmart is positioning itself in a highly uncertain retail environment.

“Behind the scenes, grocery sales are running hotter than expected, eCommerce is turning profitable, and strategic pricing is helping the company win share without blowing up margins. More importantly, the real action is in the guidance. Management will likely guide conservatively and take a cautious tone on Q2, citing tariff and macro uncertainty. That may disappoint short-term traders, but we think long-term investors should lean in.

“And that’s the real takeaway: Walmart is doing what few retailers can, balancing offense and defense with precision. It’s gaining share, investing in long-term growth, while at the same time managing near-term headwinds better than peers like Target. The company is clearly navigating tariffs better than most (through sourcing diversification and inventory flexibility). The stock isn’t cheap, but that’s the cost of quality in today’s retail. Walmart remains one of the few names in retail that can navigate uncertainty and keep growing.”

 

 

Burberry surges as profit beats expectations

 

Adam Vettese, market analyst for eToro says: “It’s been a tough year so far for Burberry shareholders, with shares having almost halved from their February peak. However, this morning’s update may indicate that the turnaround plan is beginning to bear fruit. Burberry’s Q4 comparable retail sales declined by 6%, outperforming analyst estimates of a 7.78% drop. Mainland China sales fell 8%, better than the forecasted 9.5%, signalling resilience in a critical market despite a luxury sector slowdown.

“There was also operational resilience as the company managed to turn a profit despite a revenue drop as well as a swathe of simultaneous cost cutting measures. Burberry is far from out of the woods yet, sales are still falling, particularly in wholesale. Given China is such a huge market for the business, any further rumblings as regards to tariffs could be a huge headwind.

“Despite shares being up this morning, they were almost three times the price just 2 years ago so there really is a long way to go. Some investors may not yet be convinced that the turnaround story is on its way and may exercise caution before jumping in.”

 

 

US CPI report produces a mixed bag, but the Fed’s caution still looks justified

 

 

Lale Akoner, global market analyst at eToro says: April’s CPI report came in softer than expected, but we’re not ready to call it a turning point. Yes, the headline number cooled thanks largely to cheaper oil and the biggest grocery price drop since 2020 but the details are less comforting. Housing costs remained stubbornly high, and super-core services (excluding shelter) climbed. These are the sticky components that the Fed watches closely, and they’re not giving up ground easily. Retail investors are likely to view the recent data as a short-term positive which may support risk assets – especially equities and rate-sensitive sectors such as real estate and tech.

“In our view though, it is still too early to judge the inflationary impact of new tariffs. The modest pass-through in April likely reflects pre-tariff inventory being cleared, not a lack of pricing power. That buffer may not last. Over the next few months, we’ll get a clearer picture of whether tariffs feed into consumer prices or trigger substitution effects and whether trade tensions end up hitting growth harder than inflation.

“For now, this mixed bag validates the Fed’s cautious stance. There’s no urgency to cut, but no clear case for tightening either. Markets may cheer the softer print, but we still think that the inflation outlook remains uncertain.”

 

JD.com beats estimates as sentiment improves

 

Adam Vettese, market analyst for eToro says: JD.com has reported a robust 16% increase in revenue year on year amid improving consumer sentiment and strength in core categories such as electronics and supermarket goods, signalling JD’s ability to capture market share in a competitive Chinese e-commerce landscape.

“JD’s focus on low prices and supply chain efficiency continues to differentiate it from Alibaba’s third-party model and Pinduoduo’s discount-driven approach. Continued double-digit growth in quarterly active customers and shopping frequency highlights the company’s ability to retain and attract users. Strategic initiatives, such as government-backed trade-in programmes and enhanced logistics, are driving customer loyalty and higher order volumes.

“Free cash flow was negative and worsening, which could prove to be a cause for concern if not addressed in subsequent quarters. Notwithstanding the lingering US–China trade tensions, despite recent progress in this area, these factors may have contributed to the share price dip following the announcement.”

Gold still has room to shine, despite markets’ rebound

 

 

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Gold remains under pressure, with scope for further declines as risk appetite holds firm, dampening demand for safe havens. The trade truce between the US and China has buoyed sentiment, fueling optimism for more agreements with other trading partners.

“However, tariffs are here to stay, and the path to a comprehensive deal is likely to be fraught with complexity. Trade unpredictability remains entrenched, and persistent geopolitical risks could quickly revive demand for gold. Combined with ongoing central bank buying, the road to new all-time highs remains wide open.”





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