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Walmart and Netflix are on a roll, while Burberry is falling behind

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Walmart beats Q1 expectations

Walmart exceeded first-quarter revenue and earnings expectations, leading to an upward revision of its full-year forecast. The retailer now anticipates a revenue increase at the high end or slightly above the previously expected 3-4%, and has raised earnings per share expectations to $2.23-$2.37. The positive financial news pushed the stock up 4.6% in the US pre-market. Walmart attributed its success to significant e-commerce gains, newer profitable ventures like advertising, and attracting more high-income shoppers. As the largest retailer in the U.S, Walmart often serves as a bellwether for the U.S. economy, particularly during inflationary periods due to its focus on staples and value.

Netflix’s first step into live sports

Netflix’s ad-supported tier now has 40 million global monthly active users, nearly double the 23 million from January. The streaming platform is also venturing into live sports, showing two NFL games on Christmas Day this year and at least one matchup in both 2025 and 2026. Although Netflix didn't disclose the cost of the streaming rights, these games could attract significant advertisers, helping the company boost profits by raising subscription prices and encouraging users to switch to the ad-supported tier.

Burberry facing challenges 

The iconic Burberry trenchcoat failed to save the luxury fashion house from financial challenges. Sales in China dropped by 19% last quarter, leading to an overall same-store sales decline of 12%. Burberry expects wholesale revenue to be 25% lower in the first half of this financial year. The luxury brand’s creative revamp emphasizes its iconic check pattern, but high prices like the £1,890 "rocking horse" bag may deter buyers. Investors are skeptical, with Burberry's stock down 4% on Wednesday and halved over the past year. Amid flat US retail sales and inflation, Burberry's mid-tier positioning may be its biggest challenge.

Sources: CNBC, Finimize

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