Welcome to today's episode of Quality Compounders. In this episode, we're unpacking the latest earnings reports from Walmart and Target, highlighting key takeaways from these retail giants as they navigate the evolving economic landscape.

**Walmart** delivered a strong Q3 performance with **5.4% sales growth** and a **9.8% increase in operating income**. Key drivers included robust e-commerce growth of 27%, gains in grocery and health categories, and strategic inventory management. Walmart's focus on affordability and convenience continues to resonate, especially with higher-income households, contributing to market share growth across income levels.

In contrast, **Target** faced challenges with a modest **0.3% increase in comparable sales** and a sharper decline in discretionary spending. Traffic grew by 2.4%, but average ticket size dropped. Strength in beauty and essentials helped offset weakness in categories like apparel and home goods. Target's cautious outlook reflects ongoing consumer budget pressures and promotional activity aimed at boosting holiday sales.

Stay tuned as we dive into what these results mean for the future of retail, consumer behavior, and holiday shopping trends!

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