WMT reported earnings for 1Q27 yesterday, and the stock dropped 7% on the news (note: I own WMT shares in the only fund I actively manage; I’m also a Walmart+ member). To me, the negative reaction was more about the company’s projections for the rest of the year than anything else. What struck me from the conference call:

–although I hadn’t thought about it much, I was surprised at the amount of customer information the company must be collecting to be able to make the statements it did

–for example, the company’s sales gains are in large part coming more from higher-income consumers trading down from traditional supermarkets to WMT than from its traditional customer base

–lots of customers were availing themselves of WMT’s relatively cheap gasoline, but for the first time in years, lower income customers weren’t filling their tanks–because, I assume, they didn’t have enough money to

–income tax returns were higher than usual this year, however, so customers had more than they’ll presumably have to spend during the rest of the year

–not stated, but implied, most of the sales gains came from more affluent customers either trading down for the first time or expanding their use of WMT offerings

–also not stated, but my conclusion, strength in non-US businesses is helping to offset weakness at home

All in all, the message I get is that, looking from the ground up, the message is the same: the administration has made the US an increasingly difficult place to do business in, with the worst economic damage is being done to ordinary people.