Updated: Nov 25, 2022
In its September quarterly earnings, Walmart reported 13% growth in international revenue to $26.8 billion in constant-currency terms, primarily due to double-digit growth in Flipkart and its Mexico business Walmex.
What is happening: Walmart attributed the growth in its net sales to Flipkart’s flagship festive season sale in India, the Big Billion Days.
In the most recent quarter, gross revenue increased 8.7 percent year on year to $152.8 billion.
According to the company, Walmart's consolidated gross profit rate fell 89 basis points due primarily to markdowns and sales mix in the United States, an inflation-related LIFO charge at Sam's Club, at the timing of Flipkart's annual sale event.
For this years last quarter, Walmart's adjusted earnings per share were $1.50, a 3.4% increase over the same period last year.
Amidst the precarious financial situation at Walmart, Flipkart and its advertising agency along with their digital payments firm-PhonePe have brought in huge upshift in the charts.
What is being said: “Walmart international delivered strong sales results with sales up 13.3% in constant currency despite continued macro headwinds. Ecommerce sales on a constant currency basis were exceptionally strong, up 46% in the quarter. The earlier timing of Flipkart’s Big Billion Days event was also of benefit to sales results,” Walmart's CFO said.
By the numbers: Walmart International's net sales increased by $1.7 billion, or 7.1%, to $25.3 billion in the fiscal quarter ended October 31, 2022.
According to the company, currency fluctuations impacted the results by $1.5 billion.
Meanwhile, Flipkart had a fantastic quarter in India, with a strong customer response to the Big Billion Days sales, which were moved from Q4 to Q3 this year.
The event: During the eight-day event, the site received over 1 billion visitors, with more than 60% coming from tier 2 and tier 3 cities.
According to the company, it is still seeing strong growth in Flipkart ads in India, which has contributed to its global advertising business, which grew by more than 30% during the quarter.
Meanwhile, the quarterly transactions on PhonePe, Flipkart's digital payments firm, surpassed 10 billion for the first time.
Basically: Walmart International's net sales increased by $1.7 billion, or 7.1%, to $25.3 billion in the fiscal quarter ended October 31, 2022. The company lost $1.5 billion in revenue due to currency fluctuations. And yet Flipkarts's Big Billion Days contributed in shifting Walmart's status from Q3 to Q4