Generation Z include those born during the late 1990s and early 2000s, according to Britannica. The specific range of 1997 to 2012 is used by some sources, which would make members of this cohort currently between 13 and 28 years old. And because a good chunk of them are starting their careers and making some money, that means they can participate in the economy in rather unique ways. NielsonIQ said that Gen Z is influencing the retail landscape by being digitally native, socially conscious and valuing au ...

Core Insights - Walmart Inc. reported a 17% year-over-year increase in membership income for Q3 fiscal 2026, highlighting the growing significance of fee-based revenues in its operating model [2][11] - The overall membership and other income rose by 9%, indicating steady momentum across various regions and formats [2] Membership Performance - International membership income surged by 34%, primarily driven by Sam's Club China, which saw increased member engagement and penetration [3][11] - In the U.S., Walmart Plus membership income grew at a double-digit rate, supported by strong net additions and enhanced service offerings [3] - Sam's Club U.S. experienced a 7% growth in membership income, aided by increases in member counts, renewal rates, and Plus member participation [3] Revenue Composition - Membership fees and advertising income contributed approximately one-third of consolidated adjusted operating income, reflecting a higher margin profile compared to traditional merchandise sales [4][11] - The 17% rise in membership income underscores Walmart's increasing reliance on recurring fee revenues as a significant contributor to profitability [6] Membership Program Enhancements - Walmart Plus achieved its strongest quarter of net additions since its launch, driven by faster delivery speeds, improved service levels, and new benefits like the OnePay cash rewards credit card [5] - These enhancements have positively impacted member engagement and retention during the quarter [5] Industry Comparisons - Target Corporation reported nearly 18% growth in non-merchandise sales, with membership and advertising revenues rising at double-digit rates, indicating a similar trend in leveraging fee-based revenues [7] - Costco Wholesale Corporation reported membership fee income of $1.329 billion, up 14% year-over-year, with a total of 81.4 million paid members, showcasing the profitability of its membership model [8] Financial Outlook - The Zacks Consensus Estimate for Walmart's current fiscal year indicates expected year-over-year growth of 4.6% in sales and 4.8% in earnings per share [9][12] - Walmart's shares have increased by 23.9% over the past year, slightly outperforming the industry's growth of 23.5% [10]

Key Takeaways COST's membership income rose 14% to $1,329M, driven by renewals and fee increases.Paid households grew 5.2% to 81.4M, with executive memberships up 9.1% to 39.7M.Membership renewal rates held strong at 92.2% in the U.S./Canada and 89.7% globally.Costco Wholesale Corporation’s (COST) first-quarter fiscal 2026 performance once again highlighted the strength of the membership business model. Membership income has been one of the company’s most resilient and predictable revenue streams. Membershi ...

Core Insights - Walmart, Inc. (WMT) has shown strong performance in 2025, with shares increasing by 25.3% year to date, reflecting investor confidence in its execution and growth strategies [1][2] Group 1: Performance Metrics - Walmart's growth outpaces the retail industry's 24.6% increase, the Zacks Retail – Wholesale sector's 6.7% rise, and the S&P 500's 18.6% gain this year [2] - Compared to major competitors, Walmart has outperformed Target Corporation (TGT), The Kroger Co. (KR), and Costco Wholesale Corporation (COST), with Target declining by 30% year to date [2] Group 2: Growth Drivers - The company's fundamentals are strong, with broad-based sales and profit growth across Walmart U.S., Sam's Club, and International segments [3] - E-commerce sales surged by 27% in Q3, with U.S. e-commerce growing by 28% and International by 26%, supported by faster delivery and improved digital capabilities [4][8] - Walmart's omnichannel ecosystem is expanding, benefiting from strong grocery traffic and notable growth in fashion and general merchandise [5] - Higher-margin revenue streams, including advertising and membership, now account for about one-third of consolidated adjusted operating income [6][8] - Investments in automation and AI are enhancing fulfillment efficiency and supporting margin performance [9] Group 3: Challenges and Considerations - Despite strong fundamentals, challenges remain, including a merchandise mix leaning towards lower-margin categories and cost pressures from tariffs [10] - Upcoming legislation affecting the pharmacy business and moderation in discretionary spending could limit growth in general merchandise categories [11] Group 4: Valuation and Market Position - Walmart's forward 12-month P/E ratio stands at 39.13X, above the industry average of 35.61X, indicating limited room for further multiple expansion [12] - The elevated valuation is supported by consistent execution and growth in higher-margin businesses, but it makes the stock sensitive to changes in consumer spending [13] Group 5: Analyst Outlook - Analysts' earnings estimates for Walmart have increased, indicating expectations for sustained strong growth despite current challenges [14] - The Zacks Consensus Estimate for fiscal 2026 and 2027 EPS has risen over the past 30 days, reflecting positive sentiment [14] Group 6: Summary and Future Outlook - Walmart enters 2026 with strong momentum in e-commerce, membership, marketplace, and advertising, supported by improved delivery and inventory management [17] - While margin pressures from various factors may impact performance, Walmart's durable business model and long-term initiatives make it a compelling hold for investors [18]

Core Insights - Walmart Inc. is set to report its third-quarter fiscal 2026 earnings on November 20, with expectations of solid performance driven by strong momentum in both store and digital channels, an improved merchandise mix, and increasing contributions from membership and advertising [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for third-quarter revenues is $177.1 billion, reflecting a 4.5% increase year-over-year, while the consensus for earnings has risen to 61 cents per share, marking a 5.2% increase from the previous year [2] - Walmart has a trailing four-quarter average earnings surprise of 2.8%, although it experienced a negative earnings surprise of 6.9% in the last reported quarter [2] Earnings Prediction - The Zacks model predicts an earnings beat for Walmart, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [3][4] Factors Influencing Q3 Earnings - Steady demand and market share gains are expected to be reflected in the upcoming results, with consistent performance across income groups and strength in grocery and consumables [5] - Digital sales momentum is significant, with global e-commerce sales growing 25% in the second quarter, driven by store-fulfilled delivery and a robust marketplace [6] - Higher-margin businesses are contributing positively, with advertising revenue increasing by 46% globally and membership income rising over 15% [7] - International markets, including China and Flipkart, are showing strong constant-currency growth, although currency fluctuations may pose challenges [8] Challenges Ahead - Tariff-related cost increases and elevated self-insured liability and workers' compensation costs are key headwinds for the quarter [9][10] Stock Performance - Over the past year, Walmart's stock has increased by 18.9%, outperforming the Zacks Retail – Supermarkets industry growth of 18.3% and the S&P 500's rise of 15.7% [11] - Walmart's stock has surpassed competitors like Kroger, Costco, and Target in terms of stock performance [13] Valuation Metrics - Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 36.02, above the industry average of 32.78, indicating a premium valuation due to consistent execution and stronger digital profitability [14][16] Investment Outlook - With solid traffic trends, strong omnichannel growth, and expanding higher-margin profit streams, Walmart is positioned for stability and steady growth, despite near-term hurdles [18]

Walmart President and CEO Doug McMillon will retire Jan. 31, 2026, and he will be succeeded by Walmart U.S. CEO John Furner, the company said in a Friday (Nov. 14) press release.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logi ...

Core Insights - John Furner has a long-standing career at the retailer, indicating strong internal leadership and continuity within the company [1] Company Background - John Furner grew up in Arkansas, suggesting a deep-rooted connection to the local community and potentially influencing the company's regional strategies [1] - He interned at Sam's Club Mexico, highlighting the company's international exposure and experience in diverse markets [1]

Core Insights - Walmart Inc.'s International business showed strong performance in Q2 fiscal 2026, with sales increasing by 10.5% year over year in constant currency to $32.7 billion, driven by significant growth in China, Walmex, and Flipkart [1][9] Group 1: Regional Performance - China was the standout market, achieving a remarkable 30.1% growth in constant currency, with over half of sales coming from digital channels, reflecting Walmart's effective integration of physical and online sales [2][9] - Walmex experienced a 6.1% growth, supported by increased customer traffic and strong e-commerce adoption, particularly through pickup and delivery services, alongside festive sales and new store openings [3][9] - Flipkart contributed to growth with a solid performance in marketplace and advertising, leading to a 22% increase in international e-commerce sales, driven by store-fulfilled pickup and delivery [4][9] Group 2: Financial Metrics - Operating income in constant currency decreased by 2.8% as Walmart continued to invest in technology and growth initiatives in key markets like India, Canada, and Mexico, yet the sales momentum across international markets highlighted the segment's importance in Walmart's overall growth [5] - The Zacks Consensus Estimate indicates a projected year-over-year sales growth of 4% and earnings per share growth of 3.6% for the current financial year [10] Group 3: Market Position and Valuation - Walmart's stock has performed well, with shares rising 32% over the past year, outperforming the industry growth of 25.4%, while competitors like Costco and Target showed varied performance [6] - The forward 12-month price-to-earnings ratio for Walmart is 37.93, which is higher than the industry average of 33.04, indicating a premium valuation compared to Target but a discount relative to Costco [7]

Core Insights - Walmart Inc. (WMT) maintains strong investor confidence, reflected in its forward 12-month P/E ratio of 36.49, surpassing the industry average of 33.45 and the broader Zacks Retail–Wholesale sector's 24.50, indicating market belief in its growth potential and operational resilience [1][4][7] Valuation and Market Performance - Walmart's elevated P/E ratio signals expectations of steady earnings growth and improved margins as it leverages scale, technology investments, and innovative strategies [4][7] - Over the past three months, Walmart shares increased by 8.5%, outperforming the industry gain of 8% and the broader sector's 2.5% increase, while the S&P 500 matched Walmart's performance [5][6] Business Strategy and Growth Drivers - The company's diverse business model generates growth from various streams, including digital advertising, memberships, and marketplace operations, which are less reliant on traditional retail sales [9] - Walmart's digital and logistics capabilities have improved significantly, utilizing its store network as fulfillment hubs for faster delivery, while investments in automation and AI enhance productivity [10] Financial Performance - In Q2 of fiscal 2026, Walmart reported a 5.6% increase in total revenues, with comparable sales in Walmart U.S. up 4.6%, driven by grocery strength and health & wellness growth [11] - International sales surged by 10.5%, led by a 30% increase in China, with digital sales growing 25% globally [11] Cost Pressures and Future Outlook - Despite strong performance, Walmart faces cost headwinds, including $450 million in additional liability expenses and pressures from higher wages and technology investments [12] - Management anticipates operating income growth to outpace sales growth for the full year, with consolidated net sales growth expected between 3.75-4.75% [13] Analyst Sentiment - Analysts have raised near-term earnings estimates for Walmart, reflecting confidence in the company's ability to sustain growth [15]

Core Insights - Walmart has entered the real estate sector by acquiring the Monroeville Mall in Pittsburgh for $34 million, with plans for redevelopment that include a new store and a Sam's Club [2][4]. Company Developments - The acquisition was first reported in February, and there is uncertainty among tenants regarding Walmart's intentions for the mall, leading to concerns about their future [2][3]. - Tenants have reported a significant decline in sales since the announcement, with some believing the mall is already closed [3]. Industry Trends - This move marks Walmart's first significant step in a real estate strategy initially announced in 2018, which aims to develop town centers by repurposing parking lots into community spaces [5]. - The trend of retail giants like Walmart and Amazon acquiring struggling malls reflects a broader industry shift, as many malls face declining cash flow and increased competition from eCommerce [6]. - Experts predict a rise in mixed-use developments where malls serve as multifunctional hubs, incorporating residential, office, and healthcare facilities [7].