Alibaba, Walmart and Target are about to show retailers’ view of the pandemic

By Emily Bary

Earnings Watch: Walmart and Target will show early effect of pandemic on U.S. retail, but don’t expect forecasts

U.S. retail companies will be eagerly watching Alibaba Group Holding Ltd.’s next Friday morning report, when the Chinese e-commerce giant will show what it was like to operate in the heart of the COVID-19 pandemic and emerge on the other side.

Business lockdowns imposed to combat the spread of the coronavirus are complicated for e-commerce players because the limitations on in-person activity can help entice people to shop online, but they also bring economic uncertainty that pressures discretionary spending.

Chinese government data showed slower overall growth for online purchases of physical goods in January and February, but the April growth numbers were back near pre-virus levels in what one analyst said was a positive sign for Alibaba. BABA, +5.69%

Many U.S. retailers are set to report earnings in the week ahead as well, though they’re still bearing the brunt of the pandemic. And unlike Alibaba, which does almost all its business online, retailers like Walmart Inc. WMT, +1.36% and Target Corp. TGT, +3.52% have physical stores to worry about.

U.S. retail companies likely have a limited sense of what the rest of the year looks like for their businesses, given questions about the trajectory of the COVID-19 outbreak and what governments will do in response. Investors can expect little in the way of forward-looking financial commentary, in keeping with a broader trend that’s spanned sectors……more here

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