Three things stand out in Wal-Mart earnings.
- International growth is hot.
- US growth is not.
- The name of the game is “operating leverage,” i.e. cost cuts, i.e. job cutting.
Two tables basically tell the story.
The first is the geographical revenue breakdown. Note that Q3 revenues in the US was actually down slightly from last year:
But of course, thanks to operating leverage, the firm was able to squeeze out a tiny income jump: