US-based retail giant Walmart has announced an 8% year-on-year (YoY) growth in international sales to $30.3 billion in Q3 FY25, driven by Flipkart‘s solid sales growth. The company’s ecommerce sales surged 43% due to marketplace and store-fulfilled pickup and delivery.
Walmart attributes Flipkart’s The Big Billion Days event
Walmart attributed the growth spurt to Flipkart’s The Big Billion Days (BBD) event, which shifted from Q4 last year to Q3 this year. “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 earnings presentation stated.
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Meanwhile, the company’s advertising business also saw a 50% growth, led by Flipkart. Walmart’s gross profit rate rose to 24.2% from 24.1% in the year-ago period, partially offset by the timing shift of BBD sales. However, Walmart International’s gross profit rate contracted by 85 basis points due to the change in timing of BBD.
Flipkart’s BBD benefited growth in Q3, to impact it in Q4 – Walmart
“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.
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In October, Flipkart reported 7.2 billion visits during the festive season, with sellers witnessing 40-50% YoY growth. Walmart’s operating income in Q3 stood at $6.7 billion, an 8% increase from the year-ago quarter but a 14% decline from the preceding Q2.
Further, Indian e-commerce giant is focusing on reducing losses and boosting revenue. The company’s marketplace arm, Flipkart Internet, reported a 41% YoY decline in net loss to INR 2,358 crore in FY24, with operating revenue growing 21% to INR 17,907.3 crore.
