Confidential Memo: Walmart Sales in Trouble
It's the latest in a long list of bad news for the domestic chain. It is also a challenge to CEO Michael Duke, who has led the retail giant since early 2009 and S Robson Walton, the chairman of the board. Walton represents the interests of the retailer's founding family which holds the controlling share block in the company.
Walmart cannot be a success without an upward movement in the revenue of its flagship division. Walmart's U.S. sales were flat in the last quarter, according to its 10-Q. Revenue for the division in the latest period was $62.6 billion. compared to the year-ago period when the revenue was $62.3 billion. That amounts to roughly two-thirds of all Walmart's revenue. Overseas sales are rising, and reached $27.9 billion last quarter, but that growth has slowed in recent quarters.
The leaked memo will certainly put more pressure on CEO Duke. It has been hard to make a argument that his tenure has been successful and that argument has become even more difficult lately.