Walmart(WMT) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - Walmart International generates over $120 billion in net sales with $5.5 billion in EBIT, making it a significant segment for the company [3] - The company aims to reach a $200 billion GMV segment by 2028 and double its profit while increasing e-commerce penetration [14][15] Business Line Data and Key Metrics Changes - E-commerce accounts for nearly 25% of international net sales, with over 50% of sales in China being online [20] - The international segment is positioned as a growth driver for the enterprise, contributing positively to both top and bottom lines [12] Market Data and Key Metrics Changes - High growth markets identified include India, Mexico, and China, with a focus on unlocking omnichannel retail opportunities [8] - In India, e-commerce penetration is only about 9%, indicating significant growth potential [26] Company Strategy and Development Direction - The long-term goal for the international business includes entering new markets and growing profitability in existing ones [7] - The company is exploring marketplace entry strategies rather than traditional brick-and-mortar approaches [9] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of learning from past divestitures to strengthen the current portfolio [11] - The company is adapting its supply chain to build resiliency and diversify manufacturing bases in response to global challenges [18] Other Important Information - Walmart is focusing on digital inclusion in Mexico through initiatives like the Byte business, which offers digital connectivity at a discount [57] - The company is leveraging learnings from international markets to enhance its offerings and operational strategies [64] Q&A Session Summary Question: What are Walmart's long-term goals for the international business? - The company aims to curate high-growth markets and unlock omnichannel retail opportunities while remaining open to new market entries [8][9] Question: How does Walmart plan to improve profitability in international markets? - Management highlighted ambitions to double profits and increase e-commerce penetration while maintaining a focus on growth [14][15] Question: What challenges is Walmart facing in Mexico? - The company is addressing digital inclusion and competition while focusing on building a rich ecosystem for customer engagement [60][59] Question: How is Walmart adapting its supply chain in the current environment? - The company is building resiliency in its supply chain and diversifying manufacturing locations to mitigate risks [18][66] Question: What can be learned from the success of e-commerce in China? - Management noted the importance of quick delivery models and adapting successful strategies from China to other markets like India [44][45]