US-based retail major Walmart reported a 8% year-on-year (YoY) growth in its international sales to $30.3 Bn in Q3 FY25 on the back of solid sales growth by Flipkart
The Flipkart parent credited the ecommerce major for driving the growth spurt in its net sales during the quarter
The company’s gross profit rate for the quarter rose to 24.2% from 24.1% in the year-ago period
US-based retail major Walmart reported a 8% year-on-year (YoY) growth in its international sales to $30.3 Bn in Q3 FY25 on the back of solid sales growth by Flipkart.
In its earnings presentation for the quarter, the Flipkart
parent said its ecommerce sales grew 43% led by marketplace and store-fulfilled pickup and delivery. Walmart credited Flipkart’s The Big Billion Days (BBD) for the growth spurt.
“Positively affected by the timing of Flipkart’s BBD event, which shifted from Q4 last year to the majority in Q3 this year,” the company’s earning presentation read.
Walmart also said that its advertising business grew 50% during the quarter, led by Flipkart.
The company’s gross profit rate for the quarter rose to 24.2% from 24.1% in the year-ago period. Walmart said the increase was partially offset by the timing shift of Flipkart’s BBD sales event.
Meanwhile, Walmart International’s gross profit rate contracted by 85 basis points due to the change in timing of BBD.
“Timing of Flipkart’s BBD event benefited growth in Q3 and will impact growth in Q4. Ecommerce sales up 43%, led by marketplace and store-fulfilled pickup & delivery,” the company said.
Last month, Flipkart claimed that it saw 7.2 Bn during visits during the festive season this year. It added that sellers witnessed 40-50% YoY growth during the festive period.
Walmart’s operating income in Q3 stood at $6.7 Bn. This represented an 8% increase from the $6.2 Bn in the year-ago quarter but a 14% decline from $7.9 Bn in the preceding Q2.
\This comes at a time when Flipkart is working on culling its losses and bolstering its top line. Flipkart’s marketplace arm, Flipkart Internet, registered a 41% YoY decline in its net loss in the fiscal year 2023-24 (FY24) to INR 2,358 Cr. Its operating revenue grew 21% to INR 17,907.3 Cr during the year.
