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

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On today’s episode of Shopping for Stocks, Editor Maddy Johnson takes a look at America’s largest retailer, Walmart (WMT - Free Report) , 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 - Free Report) 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 - Free Report) and Home Depot (HD - Free Report) 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 - Free Report) 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 report >>

Macy's, Inc. (M) - free report >>

Walmart Inc. (WMT) - free report >>

The Home Depot, Inc. (HD) - free report >>