Retail giant Walmart on Thursday announced that Indian ecommerce platform Flipkart delivered double-digit topline growth during the April-June quarter. Its contribution margin also expanded significantly in the second quarter, it added.
The US-based retail firm expects an increase of 3.25% to 4.25% on consolidated net sales on a constant currency basis in the third quarter based on the impact of “timing of festive events” in the company’s international segment and the “timing of planned expenses”.
The company added that it is bullish about the results of the Big Billion Days festival in India, which happens around the third and fourth quarters of the year.
“Global ecommerce losses continue to narrow, most notably in our Walmart US and Flipkart businesses,” noted John David Rainey, Executive Vice President and Chief Financial Officer.
The world’s largest retailer by sales said its international sales rose 8.3% on a constant currency basis in the second quarter to $29.9 billion led by China, Walmex and Flipkart.
The company, which owns 85% of Flipkart and 84% of PhonePe, witnessed a 23% rise in its advertising revenue in the second quarter, led by Flipkart and Walmex.
“Flipkart again delivered positive contribution margin, and PhonePe continues to deliver amazing growth in total payment volume,” said Doug McMillon, President and CEO, Walmart.
During the quarter, Flipkart grocery grew over 50% on the back of next-day delivery in over 200 cities. Flipkart’s quick commerce vertical, Flipkart Minutes, delivers in select areas of Bengaluru within a few minutes.
On a consolidated basis, Walmart reported a total revenue of $169.3 billion in the three months ended June 30, 2024, up 4.8% rise from the $161.6 billion reported a year ago.
Excluding special items, it reported earnings of 67 cents per share during the quarter.
The company has raised its expectations for FY25 citing “generally stable consumer and continued pressure from its mix of products and formats globally.” It expects full-year sales growth of 3.75% to 4.75% with an adjusted EPS (earnings per share) of $2.35 to $2.43.
