This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Walmart CEO Reports Substantial Progress On Key Strategies And Focus On Near-Term Execution To Deliver Results

Stocks in this article: WMT

Duke then turned to a company-wide goal he set at the annual investors' meeting two years ago: reducing operating expenses as a percentage of sales by at least 100 basis points over five years. "We made progress on that goal last year, and our goal is to deliver leverage again for this fiscal year," said Duke.

Substantial Progress in Key Long-Term Areas

Highlighting the long-term areas where the company is making progress, Duke started by saying that investments in leverage initiatives are paying off around the world. For example, the U.S. logistics team is reducing shipping costs and increasing transportation efficiency, a single process initiative is generating significant savings in labor productivity in China, and the company has migrated all but one market in Latin America to its Costa Rican Shared Services Center. Duke added, "We're driving costs out of our system so we can invest those savings into lower prices for Walmart customers."

Duke said the company is "much more streamlined in how we make real estate decisions and invest capital." He highlighted the stronger performance of new stores and progress in bringing down the cost to build, expand and remodel stores.

Duke said he "loved the progress that the company has made in e-commerce over the past year. The biggest opportunity we have is winning the intersection between physical and digital retail around the world. We've never been more connected across the company on e-commerce, and our results demonstrate this." In the first half of the year, Walmart's e-commerce sales grew 30 percent globally, including a strong performance at Yihaodian in China.

As the company has discussed previously, Walmart has made major investments in compliance over the past year. Its focus has been on better processes and procedures, increased training for associates and strengthening organizational leadership. "This is the right thing to do," Duke said. "And let me be clear that our progress with compliance makes us a stronger business for the long-term. Compliance is an essential part of our growth strategy."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs