Aug. 25 at 8:10 PM
Deutsche Bank highlighted Walmart’s international expansion strategy after the division posted 7.9% constant-currency net sales growth in Q2 and a 5.7% increase in operating profit.
China was the key growth driver, with net sales up 20.7%, comparable sales rising 9.7% and e-commerce increasing 26% to 55% of sales. Mexico delivered 3.2% net sales growth, while Canada grew 6.0%, with Canadian e-commerce accelerating 35%.
International e-commerce rose 19% overall and represented about 30% of international sales, with 65% of orders delivered the same or next day. Walmart also expanded its marketplace into Mexico and Canada and launched Walmart+ in Canada. Reported international operating profit increased 16.6%, helped by China, India and lower e-commerce losses, although gross margin fell 15 basis points due to price investments and format mix.
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