Breakout

Walmart Signals International Intent With CEO Pick

Jeff Macke
Breakout

Walmart (WMT) announced Doug McMillon will replace current CEO Mike Duke effective February 1st.  McMillon, 47, currently serves as CEO of Walmart International, the role Duke occupied before he stepped into the top job in 2009.  Though the announcement of his resignation was a surprise, Duke had come under fire in recent weeks after Walmart reported disappointing earnings and sales results for the latest quarter.  It was the second consecutive quarter Walmart disappointed Wall Street.

Related:  Walmart earnings disaster exposes weak economy

Walmart U.S. CEO Bill Simon, 53, will presumably remain in his current role.

Walmart’s international segment has been responsible for most of what little growth in earnings and revenue the company has been able to generate of late. Accounting for slightly under ⅓ of total corporate sales, Walmart International turned in sales growth of 4.1% on a constant currency basis, and grew operating income by 8%.  Domestic comparable store sales declined in the 3rd quarter and are expected to be flat during current period.

Related:  3 Signs the Walmart Empire is collapsing

Walmart International may be a growth driver but it’s not without headaches.  The U.S. juggernaut has struggled to reconcile its traditionally aggressive growth strategies with local customs in foreign markets.  In 2012 the company was caught up in a Mexican bribery scandal.  Walmart is continuously under attack for foreign sourcing practices, most recently in Bangladesh.

View photo

.


McMillon will be forced to deal with Walmart’s status as symbol of all the economic ills facing America.  With over 1.4 million employees, Walmart is under constant fire for paying workers low wages and general unfair labor practices.  These accusations tend to overshadow more progressive facts such as the company deciding to offer full benefits to same sex partners in all 50 states earlier this year. 

Related:  Stop Blaming Walmart for America’s Problems

Duke will stay on as an advisor to McMillon for a year.

More from Breakout:

Why the Nasdaq Is Nowhere Near a Bubble

What a Yellen Taper Really Means for Stocks

Etsy: Putting America to Work One Knitted Potholder at a Time

Rates

View Comments (28)

Recommended for You

  • Bill Gates Is At Least $6 Billion Richer Than He Was Six Months Ago, But Not From Microsoft

    In July, Bill Gates may or may not have lost his title as the world's richest man. According to Forbes, Gates has a net worth of almost $82 billion, which puts him in the No. 2 spot behind Mexican telecom magnate Carlos Slim, who's worth $85.4 billion. According to Bloomberg, Gates is still the…

    Business Insider51 mins ago
  • Hyundai Elantra: Features & Benefits Come Standard

    More interior space, alloy wheels standard, 145 HP. Explore all the features and benefits of the Elantra at the Hyundai Official Site.

    AdChoicesHyundai®Sponsored
  • Live blog: What’s happening with Alibaba’s IPO?

    Live blog: What’s happening with Alibaba’s IPO? The big day has arrived, and the Chinese company that 88 percent of Americans have never heard of is making history on the New York Stock Exchange. We’re rounding up all the facts, sass and stories you need

    Gigaom
  • PepsiCo boss decries NFL problems, backs Goodell

    PepsiCo Inc.'s CEO Indra Nooyi has made a double-edged statement on the NFL's problems handling domestic violence, calling some players' behavior "repugnant" but saying that Commissioner Roger Goodell is "a man of integrity." The boss of the maker of Pepsi, Gatorade and Doritos, one of the league's…

    Associated Press
  • Chinese buyers lead charge in iPhone 6 global debut

    Buyers from China, deprived of the latest iPhone launch at home, were Friday among the first in line in Japan to grab the "6" and its new large-screen cousin as Apple hit back at rivals. Licensing problems in China meant the global rollout went ahead without the huge and lucrative market, in a blow…

    AFP
  • Can Sears Close 2,300 Stores?

    In a widely publicized note to investors, Gary Balter of Credit Suisse said that it is best that Sears Holdings Corp. (SHLD) close its Sears and Kmart locations while they, and the inventory they sell, still have value. Sears Holdings operates about 2,350 stories. Sears is generating negative…

    24/7 Wall St.
  • How Boeing's bumpy 787 launch is paying dividends

    New Boeing 787 Dreamliners taking off from Paine Field in Everett, Washington. It took Boeing Co. 10 bumpy years to turn its 787 Dreamliner concept into a commercial success. At least that's the conclusion from aerospace analysts at Jefferies, who in a note published Thursday write that all those…

    MarketWatch
  • Lacker Says He Opposes Fed Plan to Hold Mortgage-Backed Assets

    Federal Reserve Bank of Richmond President Jeffrey Lacker said he couldn’t fully support the central bank’s revised exit strategy released this week because he opposes a measure to hold mortgage-backed securities. “I believe this approach unnecessarily prolongs our interference in the allocation of…

    Bloomberg
  • The 2015 Hyundai® Sonata: Innovation That Protects

    Check out the new Sonata's impressive list of advanced safety technology that surrounds you with Smart Cruise Control, Blind Spot Detection and more!

    AdChoicesHyundaiSponsored
  • Toyota recalling 20,000 late-model vehicles on potential fuel leak

    Toyota Motor Corp said on Thursday it will recall about 20,000 vehicles worldwide for possible fuel leaks. Most of the affected vehicles are in the United States but were also shipped to other countries, Toyota said. Toyota Motor Sales USA said the recall involves vehicles with its 2GR-FE engine.

    Reuters
  • Play

    Analyst: Alibaba Stock Is Priced Conservatively

    Morningstar director of equity research R.J. Hottovy joins MoneyBeat and explains why he views the company's shares priced conservatively at its IPO.

    WSJ Live
  • What Roth Owners Should Do if They Exceed the Income Limit

    You can avoid the 6% penalty on the money you contributed if you take your 2014 contributions (and any earnings on them) out of the Roth before the tax-filing deadline on April 15, 2015 (or October 15, 2015, if you file an extension). You can also avoid the penalty and taxes if you have your IRA…

    Kiplinger
  • 3 Lessons An Investor Learned After Losing His Job, Reputation, And $1.6 Million

    The late Jim Paul went from a poor Kentucky boy to serving on the board of governors of the Chicago Mercantile Exchange through a series of lucky breaks and smart investments. By 1990 he was working in the futures research department at Morgan Stanley Dean Witter & Co., managing a team that…

    Business Insider
  • Why It Pays to Join the Company Wellness Program

    My employer just announced a new wellness program and says it will charge me more for my health insurance if I don't participate. The Kaiser Family Foundation's study of 2014 health benefits found that almost all large employers (those with 200 or more employees) and nearly three-fourths of smaller…

    Kiplinger
  • Larry Ellison’s Legacy, Ego, Mentorship: Industry Comments

    Larry Ellison stepped down as chief executive officer of Oracle Corp. (ORCL) , closing a chapter in a career filled with aggressive competition, flamboyant spending and spectacular profits. Scott McNealy, former CEO of Sun Microsystems Inc., an Oracle competitor that Ellison eventually acquired:…

    Bloomberg
  • $40-Off Limited Time Offer From Norton

    Award-winning PC protection that doesn't slow you down. Easy installation & money-back guarantee. Download today with our $40-off limited time offer.

    AdChoicesNorton by SymantecSponsored
  • Unemployment rates rise in 24 US states in August

    Unemployment rates rose in nearly half of U.S. The Labor Department says unemployment increased in 24 states, fell in 15 and was unchanged in 11. Unemployment rates can rise even when hiring increases if more people start looking for work and don't immediately find jobs.

    Associated Press
  • Play

    A Favorable Prognosis for This Pharma Stock

    Recent clinical success in cystic fibrosis positions Vertex as a dominant player in this attractive rare-disease market.

    Morningstar
  • Bears’ Jeffery Joins Fantex for 13% of His Future NFL Earnings

    Alshon Jeffery of the Chicago Bears has become the fifth National Football League player to enter a brand contract with Fantex, Inc., which bought 13 percent of his future earnings for $7.94 million in advance of selling shares in the Pro Bowl receiver to the public. Fantex also has agreements with…

    Bloomberg
  • Silver Is Getting Crushed

    Silver is getting crushed. On Friday, Silver fell more than 3% to less than $18 an ounce, its lowest level in more than four years. The price of gold also fell about 0.8% and touched its lowest level since January.

    Business Insider
  • Pabst Brewing to be sold to Russian company

    The maker of Pabst Blue Ribbon beer is being sold to Russian company Oasis Beverages for an undisclosed sum. Oasis is buying Pabst with TSG, an investment firm known for its work with consumer products companies. TSG Consumer Partners will take a minority stake in Pabst.

    Associated Press
  • Bitcoin tanks, is Alibaba to blame?

    The price of bitcoin has plummeted in the past few days, and some are blaming the Alibaba IPO for the virtual currency's fall. Members of the bitcoin community are pointing fingers at the e-commerce giant's IPO, suggesting that tech-minded China-centric money is being pulled out of the currency in…

    CNBC
  • 5 Questions That Will Not Get You Hired

    The wrong questions can tank even the best interview. Here are five questions you should never ask in a job interview.

    AdChoicesMonster.comSponsored
  • Buffett Says Burger King Taxes Show Other Logic for Hortons Deal

    Billionaire investor Warren Buffett , who agreed to help finance Burger King Worldwide Inc. (BKW)’s planned takeover of coffee-and-doughnut chain Tim Hortons (THI) Inc., said the deal wasn’t motivated by taxes. “The highest amount of federal taxes that Burger King has paid in any of the last three…

    Bloomberg