Retail giant Walmart reports strong earnings, but challenges ahead for Target and Home Depot

From Zacks Investment Research: 2025-05-16 21:54:00

Walmart reported better-than-expected comps and its domestic ecommerce business turned profitable, but ‘general merchandise’ comps were slightly negative. The outlook for this category doesn’t seem to be improving soon, which may negatively impact Target, who has a bigger exposure to this category. Target’s shares have been declining, and the stock may react negatively to the upcoming quarterly results. Home Depot and Lowe’s are facing challenges due to the interest rate backdrop, impacting discretionary spending categories. Concerns around inflation and tariffs are keeping mortgage rates elevated, affecting housing-related activities. The long-term outlook for Home Depot and Lowe’s remains positive due to favorable fundamentals.



Read more at Zacks Investment Research: Retail Earnings Continue: Target, Home Depot on Deck – May 16, 2025