ZACKS·2026-02-26 00:15Retail Earnings Overview - Walmart shares declined following quarterly results due to underwhelming guidance, but the stock has increased over +13% since the start of 2026, outperforming the broader market's +0.4% gain [2] - Walmart's same-store sales in the U.S. increased by +4.6%, exceeding consensus estimates of +4.24%, with U.S. ecommerce sales up +27% year-over-year [3] - Home Depot beat estimates and reaffirmed guidance, with same-store sales increasing by +0.4%, surpassing estimates of a -0.24% decline [5][6] Walmart Performance - Walmart's ecommerce now accounts for approximately 18% of total revenues, with the U.S. ecommerce unit fully profitable [4] - The company reported a +46% increase in advertising revenues, totaling $6.4 billion for the fiscal year [4] Home Depot Insights - Home Depot's guidance reflects a stable demand backdrop, although the home improvement sector faces challenges from high home prices and mortgage rates [5] - The company is optimistic about demand normalization in the post-COVID period [5] S&P 500 Earnings Trends - Total earnings for 453 S&P 500 members reporting Q4 results are up +12.2% year-over-year on +8.7% higher revenues, with 75.1% beating EPS estimates [7] - Q4 earnings growth is expected to be +13.2% with +9.2% higher revenues, marking the 10th consecutive quarter of positive earnings growth [7] Retail Sector Performance - For 22 Zacks Retail sector companies reporting Q4 results, total earnings increased by +6.9% year-over-year on +8.6% higher revenues, with 50% beating EPS estimates [9] - Excluding Amazon, the retail sector's earnings growth rate for 2025 is projected to drop by +1.5% [11]