Walmart Unveils McLay's Exit From International Unit: What to Know?

Walmart Inc. WMT has announced that Kathryn McLay, president and chief executive officer of Walmart International, will depart the organization. McLay will continue to lead the international business until Jan. 31 and will remain with the company through the first quarter of fiscal 2027 to support a coordinated transition.

Walmart expressed appreciation for McLay’s decade with the organization and highlighted accomplishments achieved under her direction. Since taking charge of Walmart International in 2023, McLay advanced the business with solid revenue and profit results, accelerated digital and technology initiatives, and strengthened the international management bench.

Before leading Walmart International, McLay served as president and CEO of Sam’s Club in the United States. During that period, Sam’s Club delivered 12 consecutive quarters of double-digit sales growth, enhanced merchandise quality, expanded omnichannel services and navigated the pandemic while supporting customers, members and communities. 

Walmart further stated that a successor for the leadership of Walmart International will be announced soon.

International Markets Fuel Walmart’s Next Phase of Growth

WMT continued to post steady revenue growth in third-quarter fiscal 2026, driven by stronger digital engagement and expanding profit streams, such as advertising, marketplace services and memberships. International markets, particularly India and China, have been key contributors, benefiting from recent upgrades in supply chain, digital retail and merchandising, which have created a healthier balance between physical and online sales.

Net sales in Walmart’s International segment rose 11.4% in constant currency to $33.7 billion in the fiscal third quarter, driven by solid performances across Flipkart, China and Walmex. Adjusted operating income increased 16.9% to $1.4 billion, reflecting improved e-commerce economics and a more favorable business mix. Segment e-commerce sales grew 26% in the quarter, supported by marketplace expansion and higher store-fulfilled pickup and delivery, lifting digital penetration across markets.

Results benefited from several factors. At Flipkart, the Big Billion Days event shifted into the period, driving strong e-commerce volume growth and supporting a notable increase in international advertising revenues. China also posted strong growth, with sales reaching $6.1 billion, up 21.8% in constant currency. Digital sales accounted for roughly half of revenues, supported by rapid fulfillment, with many orders delivered within about an hour.

With Walmart preparing to appoint a new leader for its international division, maintaining consistent execution will be important, as the segment has become an increasingly meaningful driver of overall growth and corporate performance.

WMT’s Price Performance, Valuation & Estimates

Shares of Walmart have increased 10.7% in the past three months compared with the industry’s growth of 10.3%.

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 40.59X, up from the industry’s average of 36.93X. It has a Value Score of B.

The Zacks Consensus Estimate for Walmart’s fiscal 2026 earnings implies year-over-year growth of 4.8%, whereas the same for fiscal 2027 indicates an uptick of 12.3%. Earnings estimates for fiscal 2026 and 2027 have been unchanged and revised upward by 1 cent, respectively, in the past seven days.

WMT currently carries a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the retail space are FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT. 

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 450% and 7.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests a decline of 21.3% and growth of 2.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank of 1. 

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 23.7% and 16.6%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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