Walmart’s Doug McMillon Is Out—And the AI Era Is Just Beginning!

Walmart Inc.’s recent quarterly results show a complex blend of strengths and challenges, presenting a nuanced investment thesis. The retail giant achieved a 5.6% increase in sales on a constant currency basis, driven by strong performance in e-commerce, which grew by 25% globally. This increase exceeded expectations, particularly in Walmart U.S. and Sam’s Club U.S., where e-commerce growth reached 26%. The company continues to gain market share through initiatives that improve the customer experience, such as faster delivery services and price rollbacks, with some products now delivered within three hours or less. Internationally, Walmart performed well, achieving a 10.5% rise in constant currency sales due to solid contributions from operations in China, Walmex, and Flipkart. The membership and advertising income also showed substantial growth, with global advertising revenue up 46%, a testament to Walmart’s successful strategic pivot towards diversifying its income streams. Sam’s Club U.S.