Flipkart’s festive sales drives Walmart’s growth in Q3

Arkansas, US-headquartered Walmart reported total revenue of $152.8 billion, up 8.7% from the corresponding quarter in the year-ago period. Walmart’s ecommerce net sales grew to 23% of total net sales during the quarter, primarily due to Flipkart’s flagship festive sale event, Big Billion Days, held over the last week of September.

Flipkart sold $5.5 billion worth of goods during the eight-day sale period from September 22 to September 30. 

Walmart's net sales grew 8.5% year-on-year to $104.8 billion backed by a strong pick-up in the share of grocery purchases, including from high-income households owing to inflation, as well as seasonal sale events and sale of school essentials.

“We are starting to see the benefits of diversification portfolio work done over the last few years that has helped us focus where it matters in the international portfolio,” said Judith McKenna, President and CEO of Walmart International during the earnings call.

She further added, “The Big Billion Days event fell in Q3, creating some difference between Q3 and Q4. It is designed to bring new customers to Flipkart. A billion visits over the eight-day event shows the amount of value it generates. Flipkart continues to meet our expectations.”

Flipkart’s advertising business also added significantly to the growth in Walmart’s global advertising which grew 30% year-on-year, led by Walmart Connect in the US, said a statement issued by the company. 

“PhonePe recorded Total Payment Value of $920 billion on an annualised basis, at nearly 3.6 billion transactions per month,” said John David Rainey, Executive Vice President and CFO at Walmart during the earnings call, commenting on the payments arm of Flipakrt.

Overall Walmart International grew by 7.1% year-on-year to $25.3 billion for the quarter ended October 31, 2022. Walmart raised its full-year outlook for FY 2023 to reflect the Q3 results, expecting 5.5% consolidated net sales growth and a headwind of about $4.1 billion for the year. For Q4, the company expects consolidated net sales growth of nearly 3%. Walmart shares climbed by nearly 6.3% during the market opening.