- Walmart reported on Tuesday that over the quarter ended January 31, e-commerce contributed 12 percent to its international sales, led by Flipkart.
- According to FY2020’s fourth-quarter earnings report, Walmart’s international sales have risen by 2.3 percent to $33 billion.
US retail giant Walmart reported on Tuesday that over the quarter ended January 31, e-commerce contributed 12 percent to its international sales, led by Flipkart and online grocery delivery in several markets.
The company said in its fourth-quarter earnings report that international sales had risen by 2.3 percent to $33 billion, following a Chilean interruption that negatively affected $110 million in operating income. “We are still excited about the chance we have there (in India). The way Flipkart and PhonePe are scaling is incredible, “Walmart’s CEO Doug McMillon said to investors and analysts in his post-earnings presentation.
The company added that Flipkart now has more than one billion visitors each month, with monthly active customers growing by 45 percent in the last year and customer transactions rising by 30 percent in the same period. Walmart International CEO Judith McKenna told investors, “Flipkart is continuing to grow as Indian consumers become increasingly comfortable with e-commerce and the connectivity and affordability it has created.”
In addition to Flipkart, Walmart’s leading international e-commerce sales, the company said the unit reported record sales during last year’s BigBillionDays sales event without breaking any specific numbers. On a full-year basis, however, the company based in Bentonville, Arkansas, reported a reduction in free cash flow due, among other factors, to include a full year of Flipkart’s operations. Walmart reported that free cash flow in the year ending Jan 31, 2020, was down to $14.5 billion compared to $17.4 billion in the preceding reporting period.
According to FY2020’s fourth-quarter earnings report, Walmart’s international sales have risen by 2.3 percent to $33 billion. The annual calendar for Walmart extends from February through to March.
Meanwhile, the retailer’s international segment operating income fell from $1.2 bn in Q4FY19 to $1.1 Bn. The decrease in operating income was attributed to a Chilean disruption that cost Walmart $110 Mn.
“We encountered softness in some of the major international markets, as well as in Chile, where instability in most of our stores led to disruption. Walmex, China and Flipkart have all had a solid quarter, “said Brett Biggs, CFO of Walmart.
Back in 2019, Walmart entered the Indian market. The retail giant acquired a 77 percent stake in the formed Flipkart, Binny Bansal, and Sachin Bansal, in May 2018. That is the largest acquisition so far in the Indian startup ecosystem.
Walmart then raised its interest in Flipkart to 81.3 percent in November of the same year by buying partial or full stakes from previous investors of the firm. Tencent, Tiger Global, Microsoft, Binny Bansal, Accel, Iconiq Capital, Temasek, SoftBank, Naspers, eBay, and UBS sold their Flipkart shares to Walmart. The deal cost $16 Bn.