Is Revenue Contribution Of Walmart International Significant To The Company?

by Trefis Team
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Walmart (NYSE: WMT) revenue comes from mainly four segments: Walmart US, Walmart International, Sam’s Club, and Membership Fees & Other Income. Here, Trefis analysis shows how important the International segment is to Walmart. For detailed analysis please check our interactive dashboard –How important is Walmart International segment to Walmart? In addition, here is more Multiline Retail data.

How has Walmart’s Revenue moved in the past and what is its forecast?

  • Total Revenue has seen a steady and consistent increase over the last few years. Revenue increased from $485.9 billion in FY 2017 to $514.4 billion in FY 2019. Trefis estimates revenue to reach $528.6 billion in FY 2020 (ended January 2020).
  • Walmart US saw a steady growth with continuous increase in the Revenue per square foot metric and addition of stores. Revenue went up from $307.8 billion in FY 2017 to $331.7 billion in FY 2019. Trefis estimates revenue to be $344 billion for FY 2020 (ended January 2020).
  • Walmart International saw a steady growth with continuous increase in the Revenue per square foot metric. Revenue went up from $116.1 billion in FY 2017 to $120.8 billion in FY 2019. Trefis estimates revenue to be $121.2 billion for FY 2020 (ended January 2020).
  • Sam’s Club has seen fluctuating revenue over the years as the number of clubs has gone down, offset by increase in revenue per square foot metric. Revenue increased from $57.4 billion in 2017 to $57.8 billion in 2019. Trefis estimates revenue to be $59.2 billion for FY 2020 (ended January 2020).
  • Membership and other income has seen a fall in revenue from $4.56 billion in 2017 to $4.08 billion in 2019. Trefis estimates revenue to be $4.14 billion for FY 2020 (ended January 2020).
How has Walmart fared Internationally with respect to its peers?
  • Walmart has the highest revenue from the International segment when compared to Costco and Best Buy.
  • Walmart International revenue grew from $116.1 billion in FY 2017 to $120.8 billion in FY 2019. Trefis estimates the revenue to grow to $121.2 billion in FY 2020 (ended January 2020).
  • Costco International revenue grew from $27.8 billion in FY 2017 to $33.1 billion in FY 2019. Trefis estimates the revenue to grow to $35.5 billion in FY 2020 (ended January 2020).
  • Best Buy International revenue grew from $3.15 billion in FY 2017 to $3.58 billion in 2019. Trefis estimates the revenue to grow to $3.6 billion in FY 2020 (ended January 2020).

Note: For the sake of comparison in this section we have brought revenue figures of Costco in line with the reporting structure of Walmart and Best Buy.

What is the trend and relative contribution of International segment to Total Revenue and Total Gross Profit for Walmart?
  • International segment was 2nd highest contributor to Total Revenue over the past few years. The metric has declined from 23.9% in FY 2017 to 23.5% in 2019. For FY 2020 (ended January 2020) Trefis estimates a small reduction in the metric which should stand at around 22.9%.
  • In regards to gross margin Walmart International has seen a slight decline (27.5% in FY 2017 to 26.8% in FY 2019) which has also led to a decrease in the region’s contribution to Total Operating Profit. The metric fell from 25.6% in 2017 to 25.1% in 2019. Trefis estimates it to be around 24.4% in FY 2020 (ended January 2020).
As seen, Walmart International contributes nearly one-quarter of Total Revenues and Gross Profit. This makes it a significant contributor and an important segment for the company.
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