Walmart keeps Thanksgiving meal prices same as last year
Prices for a "typical Thanksgiving meal" will be the same as last year, Walmart CEO Doug McMillon said on a call with analysts Tuesday morning.
- "Customers that came to us less frequently in the past are now shopping with us more often, including higher income customers," McMillon said.
- CFO John David Rainey also reiterated how much households earning over £100,000 are driving grocery sales -- nearly three quarters of the company's gains in grocery market share are coming from this income group.
Between the lines: The company is tinkering with prices to balance demand with inventory.
- And in the case of a pivotal holiday like Thanksgiving, it's cutting prices of products including whole turkeys to under £1 per pound (according to McMillon).
- And while the company raised its annual revenue and profit outlook, executives were tempered in their optimism.
- "We've seen incremental levels of inflation month over month be less significant, but it's not clear if this represents a sustainable trend," said Rainey.
- "[And] despite a good start to Q4, our guidance assumes that the consumer could slow spending, especially in general merchandise categories."
What to watch: Two back-to-back data points -- last week's consumer price index and this morning's wholesale producer price index report for October -- suggest inflation may be starting to ease.
- Walmart's stock popped nearly 8% in pre-market trading and rose more than 7% intraday.