Walmart bets on its international business to drive growth - Check out the story
In Q2, operating income for its international segment jumped 14.3%, while net sales increased 7.1% and e-commerce sales grew 18%.
As cautious American consumers flock to value, Walmart's stock has been a star performer in 2024, with a year-to-date gain of 50%.
Internationally, the company is finally seeing returns after years of rightsizing. Its global footprint peaked at 6,363 locations outside the US in 2016.
Former CEO of Walmart International, Judith McKenna, took over in 2018 and quietly exited businesses in Brazil, Argentina, the UK, and Japan.
As of Q2, Walmart has 5,414 foreign locations in 18 countries. Kath McLay, who previously served as the CEO of Sam's Club, took the helm last September following McKenna's retirement.
McLay told Yahoo Finance that Walmart has been "tailoring the portfolio to be in the right markets."
The company is focusing on key markets like China, India, and Mexico. Similar to the US, value is at the core of its business.
In India, Walmart primarily operates through local e-commerce firm Flipkart, which it owns a majority stake in. It also has a stake in digital payments firm PhonePe.
After years of operating at a loss, Flipkart is now focused on delivery growth and profitability.
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