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Analyzing Walmart’s International Sales

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Walmart’s base business

We expect Walmart’s (WMT) net sales in international markets to fall on a YoY (year-over-year) basis in the first quarter. The negative foreign exchange rate and deconsolidation of Walmart’s operations in Brazil will likely drag the sales down. More competition online and in stores is expected to hurt.

However, the segment’s underlying sales will likely sustain the momentum due to growth in key regions including the United Kingdom, Canada, and Mexico. The acquisition of Flipkart, omnichannel offerings, and price investments are expected to support Walmart’s net sales in the first quarter.

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International sales by regions

Walmart’s Walmex region—Mexico and Central America—will likely to continue to report healthy comparable sales growth. Walmart’s new online grocery platform, omnichannel offerings, and increased marketplace sellers are expected to support its first-quarter sales.

In Canada, Walmart’s comparable sales are expected to benefit from the expansion of its online grocery pickup and delivery services. The comparable sales in the United Kingdom will likely benefit from Walmart’s e-commerce business and private label products. However, more competition could limit the sales growth rate.

In China, slow economic growth and competitive headwinds are expected to hurt Walmart’s sales. However, the expanded one-hour delivery service will likely support Walmart’s sales.

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