What Wal-Mart is doing probably tells you more about the US or global economy than any economic indicator. It’s just that it’s tough to get a straight answer.
Bloomberg reported on an email from a manager at Wal-Mart headquarters saying they “are looking at reducing inventory for Q3 and Q4″ because inventories are piling up. Shares of the company are down 1.5% after falling as much as 3%.
A spokesman for the company said the claim that Walmart is cutting orders because inventories were piling up is “completely false,” adding that the company has hundreds of inventory categories and that it is constantly managing inventory levels.
Earlier this year, a Wal-Mart email surfaced about a ‘total disaster’ in February retail sales but it didn’t prove to be especially prescient although H1 was much weaker than forecasts were suggesting at the time.
WMT shares intraday