Walmart Is Stuck With $59.9 Billion Worth of Inventory. Should You Buy the Stock Now?
Three months ago, Walmart (NYSE: WMT) shareholders were led to believe the company would be able to pare back its then-sky-high inventory levels, even if it took a bit of a toll.
Specifically, CEO Doug McMillon explained during May's quarterly earnings call that the store chain intended to "work through most or all of the excess inventory over the next couple of quarters" but also warned that "we expect some gross margin pressure in Q2." And investors did get a slight taste of those markdowns for the recently ended quarter, but only a slight one.
Well, if you think the world's biggest retailer got rid of as much inventory as it would have liked to, however, think again. Stock levels are still uncomfortably high, particularly now that we're headed into cooler weather and the holiday shopping season.
Source Fool.com
