Part 3/10:
While the guidance was indeed soft, Chen provided a more tempered viewpoint on the matter. He noted that the guidance aligns with conservative estimates typical of Walmart's past. Furthermore, despite projecting softer future earnings, the recent quarter demonstrated stable performance in various sectors. General merchandise sales exhibited low single-digit growth for two consecutive quarters, contributing positively to the overall market response.
This reality contradicts the immediate negative market response, driving home the understanding that the consumer landscape remains resilient. Walmart has performed solidly across several areas, utilizing strategies including competitive pricing, technological adoption, and effective use of digital advertising.