Picture this setting. The neatly manicured grounds of the spectacular Broadmoor resort are underfoot, the Rocky Mountains are in the background, and the sky above Colorado Springs is a crisp blue. Hundreds of dark-suited senior executives are milling about an early evening reception, sipping wine as white-gloved waiters offer curious looking hors d'oeuvres.
Walmart International sales increased 7.1% to $27.8 billion in the second quarter and all countries produced sales growth, except Japan, when measured on a constant currency basis. Profitability didn’t improve as quickly. Operating profit was up 0.5% to nearly $1.3 billion, but if some one time charges are excluded the growth rate picks up to 5.6%.
The trend of fewer people shopping Walmart stores less often has hurt the company’s efforts to revitalize U.S. sales growth, and now it the appears trip consolidation trend is playing out internationally as well.
Sam’s Club run of six consecutive quarters of accelerating same-store sales growth will come to an end in the third quarter unless the warehouse club operator exceeds guidance provided earlier this week after reporting a 5% second-quarter comp increase.