"Walmart International drove the company's strongest performance in the third quarter, posting sales growth of 11.4% in constant currency while adjusted operating income jumped 16.9%. For context, that's nearly double the growth rate of Walmart's U.S. operations. More importantly, it signals a fundamental shift in how international markets contribute to the company's bottom line. "We continue to benefit from business mix changes and lower losses in e-commerce," CEO Doug McMillon shared during the company's recent earnings call, referring specifically to international operations."
"McMillon visited three Chinese cities in October, including Hefei, a city of about 10 million people. The company now operates 60 Sam's Club locations across China, with a healthy pipeline of new clubs. What makes China valuable isn't just the sales growth. The market serves as a testing ground for innovations that eventually make their way to other regions. Dark-store formats, ultra-fast delivery, and digital-first shopping experiences are all refined in China before rolling out globally."
Walmart International posted 11.4% constant-currency sales growth and adjusted operating income rose 16.9% in the third quarter. That performance was nearly double the growth rate of U.S. operations and signaled a shift in international contribution to overall earnings. China and India are major growth engines, with digital penetration in China reaching about 50%. China now hosts 60 Sam's Club locations and serves as a testing ground for retail innovations. Dark-store formats, ultra-fast delivery, and digital-first shopping experiences are refined in China before global rollout. The international segment is moving from losses toward sustained profitability, supporting potential dividend expansion.
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