Subject: Re: DG on sale today
This should bode well for DG.
...
'Walmart Inc. raised its annual profit forecast for the second straight quarter after scoring new sales gains with bargain-hunting US shoppers.
Grocery revenue continued to climb and Walmart's general merchandise business, while still soft, was stronger than the company expected at the beginning of the second quarter, said Chief Financial Officer John David Rainey. The retailer is also still benefiting from stepped-up demand among higher-income customers, and e-commerce jumped 24% in the US.


Yes and no. This quarter, Target's revenues were off, but Walmart did well. The part about Walmart's "new sales gains with bargain-hunting shoppers" might bode well for discount retailers, but the part about "stepped-up demand among higher-income customers" and the part about "and e-commerce jumped 24%" suggests to me that Walmart is doing better in the parts of its business that are orthogonal to the dollar stores.

Really nice idea, though. 14 times average earnings from 2020 to 2022, steady grower, average 4.5%/year share count reduction since 2013, close to its lowest price in the last year, safe haven in a recession... what's not to like? Why don't I own this?

dtb