US retailer Walmart Inc on Thursday reported a 10.7% year-on-year rise in international sales at $29.4 billion in the February-April quarter of 2024 on the back of demand from Flipkart, Walmex, and China.
The company, which owns 85% of Flipkart and 84% of PhonePe, also stated that its advertising division experienced a 27% growth in the quarter, driven primarily by Flipkart and Walmex, the Mexican and Central American unit of the company.
Advertisements are a crucial revenue-generating business for ecommerce players, allowing them to capture eyeballs, target customers better, and generate high conversion rates. The practice is only getting better with more AI integration and better analytics.
“Strength was broad-based, led by Walmex, China, and Flipkart. Results for the quarter included strong growth in ecommerce, led by store-fulfilled orders and marketplace. We saw improved sales growth in general merchandise categories as we focused on celebrations across the world like Chinese New Year, Easter, and Walmart Canada’s 30th anniversary,” noted C Douglas McMillon, Walmart’s President and CEO.
He added, “Same-day delivery orders in India grew by over 150% in the quarter and are now available across 20 major cities.”
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On a consolidated basis, Walmart reported a total revenue of $161.5 billion in the three months ended April 30, 2024. It is a 6% rise from the $152.3 billion reported a year ago.
Excluding special items, it reported earnings of 60 cents per share during the first quarter of FY25.
Walmart is bullish on its annual outlook and now sees consolidated net sales at the “High-end or slightly above original guidance” of original guidance of +3% to +4% for FY25.
According to media reports, Flipkart was mulling shifting its domicile from Singapore to India as it evaluates IPO plans for the company. People in the know reportedly told the publication that while Flipkart has no plans for an IPO in 2024, the company has taken note of successful consumer domestic IPOs and has a sharp focus on profitability.
Edited by Kanishk Singh
