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Watch Out Amazon: Walmart May Use Moosejaw to Tempt High-Income Shoppers

On today's episode of Shopping for Stocks, Editor Maddy Johnson takes a look at America's largest retailer, Walmart WMT , who has been on quite the acquisition spree lately.

Just last week, the company scooped up Moosejaw , a popular and fast-growing outdoor retailer, for $51 million. Now, you're probably thinking: what in the world will Walmart do with Moosejaw?

Well, for one thing, Moosejaw carries popular, luxury outdoor brands like Patagonia, The North Face, and Canada Goose, and despite it being fairly small-the company only has 10 physical stores-it's online presence is huge, and is the real source of its growth.

Walmart's acquisition of Moosejaw is certainly a response to Amazon's AMZN ongoing expansion into traditional, brick-and-mortar retail. If it wanted to, Walmart could utilize Moosejaw's upscale brands and industry connections to entice a demographic they've always had trouble with: high-income shoppers.

Impressive Earnings

Walmart also reported better-than-expected fourth-quarter fiscal 2017 earnings results Tuesday before the bell, sending its stock up over 3% in late morning trading to $71.48 per share. Fellow retailers Macy's M and Home Depot HD reported their earnings results as well. Find out more here: Retail Earnings Roundup; WMT, M, HD Soar After Impressive Reports

Adjusted earnings (excluding discontinued real estate projects and severance costs of 8 cents) of $1.30 per share beat the Zacks Consensus Estimate of $1.29 per share but declined 12.8% year-over-year.

Total revenues came in at $130.9 billion, just edging past our consensus estimate of $130.6 million and increasing 1% year-over-year.

For more on Walmart's Q4 earnings, check out: Walmart (WMT) Q4 Earnings, Revenues Beat on Strong Comps

If you enjoyed this episode of Shopping for Stocks, make sure to subscribe and leave a rating. Thanks for joining, and we will see you next time!

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Home Depot, Inc. (The) (HD): Free Stock Analysis Report

Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report

Macy's Inc (M): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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