Wal Mart 3Q17 Earnings Call Notes

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Wal-Mart Stores’ (WMT) CEO Doug McMillon on Q3 2017 Results

Jet acquisition complete

“Next, we recently completed the acquisition of Jet.com and we’re excited to have Marc Lore as a member of our leadership team driving U.S. eCommerce for Walmart and Jet.com. One of the reasons Jet.com makes sense for Walmart is the common ground we share with basket economics. Walmart’s advantage has always been in providing the lowest prices on a basket of goods, and Jet has created a unique way to deliver the lowest cost basket online. When customers build a bigger basket online, the economics work in their favor and in ours. Marc has hit the ground running since the acquisition was finalized. We immediately set up teams to accelerate our integration efforts and we’re working hard to leverage our strengths, such as optimizing our combined fulfillment networks, utilizing our scale in areas like shipping, sharing our assortment and leveraging the strengths of our marketing teams. We’re excited to reap the benefits of our combined businesses and we look forward to updating you on our progress going forward.”

Brett Biggs

-5.8% comp in Britain

“Turning to the U.K., net sales declined 3.8% and comp sales declined 5.8% in the third quarter. The key priority remains driving an improved customer experience and building sales momentum by simplifying the offer, improving product availability and making strategic investments in service and price. We are moving with pace as we address our customer value proposition in the market.”

1.6% comp in China

“In China, net sales grew 4.2% and comp sales increased 1.6% this quarter. The key drivers of the performance were strong seasonal and festive categories during the Mid-Autumn Festival and a strong performance in fresh categories, an ongoing focus area for us in China. As Doug mentioned, through our recent alliance with JD.com, we continue to offer exciting new ways for customers to access high-quality products from around the world. It was another solid performance from Walmart International.”