This Day On The Street
Continue to site
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

5 Things You Need to Know About Walmart International That No One Is Discussing

NEW YORK (TheStreet) -- Wal-Mart Stores (WMT - Get Report) released its second-quarter earnings report on Aug. 14. Results were slightly above Wall Street expectations on the top line, with revenue coming in at $120.1 billion versus the Wall Street estimate of $119.1 billion. Earnings per share dropped from the same quarter last year, falling from $1.23 a year ago to $1.21 in the most recent quarter.

Shares, at near $75, are down nearly 5% for the year to date, but are up over 1% for the past 52 weeks.

Walmart's comparable-store sales in the U.S. were unchanged year-over-year, which garnered much of the attention by investors as it stopped the streak of domestic sales declines that began in 2013.

However, what largely got lost in the shuffle were the encouraging results internationally and how they came to fruition.

1. Comparable-Store Sales Growth

Must Read: 10 Stocks Carl Icahn Loves in 2014

The company experienced positive comparable-store sales growth in four of its five largest international markets in the second quarter.

  •  United Kingdom - 2.0% increase
  •  Canada - 1.9% increase
  •  Mexico - 0.2% increase
  •  Brazil - 9.7% increase

The increases in comparable-store sales largely came from growth in average ticket size for customers as opposed to traffic increases. Walmart only managed to increase traffic in its United Kingdom stores (up 1.7%). Brazil saw unchanged traffic, and Canada and Mexico realized traffic declines of 1.1% and 0.2%, respectively. The company is generally not bringing in more traffic in international markets, which should be a concern to investors, but the traffic that is coming in is purchasing more, as shown by rising average ticket sizes.

Walmart's ticket growth is shown below:

  •  United Kingdom - 0.3%
  •  Canada - 1.3%
  •  Mexico - 2.1%
  •  Brazil - 9.7%

In addition to comparable store sales growth in the markets above, Argentina, Chile, Japan and Africa also realized comparable store sales growth. Chile, in particular, got a boost from an unusual source, its new mobile application.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WMT $67.19 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs