Flipkart Group drives strong GMV, net sales growth: Walmart Q2 earnings

US-headquartered retailer Walmart Inc reported strong growth for its international business for the second quarter of 2024, led by Walmex, China, and Flipkart. The company’s international ecommerce business grew by nearly 26% while the advertising business for the international business grew by 40% from the corresponding April-June quarter a year ago. 

Walmart International's net sales were up by 11% at $27 billion. 

During the earnings call, CEO Doug McMillon mentioned that the Flipkart Group company Myntra was the largest fashion and lifestyle marketplace in India. 

Outgoing President and CEO of Walmart International Judith McKenna added that Myntra’s integration with ChatGPT to launch fashion recommendation AI-assistant MyFashionGPT on the app was a sign of the growing use of generative AI across businesses. “GenAI is coming to life in India and we are very proud to be associated with the market for five years,” she added. 

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John David Rainey, Executive VP and CFO at Walmart, further added that Flipkart continued to deliver strong GMV and net sales growth with additional services across advertising, travel and healthcare, delivering improvement in profits. 

“Flipkart’s consistent progress and performance reinforces our confidence in the long-term value of this business. India is leading the largest digital transformation in the world and Flipkart is the largest marketplace in India. We continue to be impressed by PhonePe,” said the CFO during the earnings call. He added that PhonePe registered annualised Total Payment Value (TPV) of $1.15 trillion and—for the first time—had processed over five billion transactions per month. 

Walmart recently bought Tiger Global's stakes in the company for $1.4 billion, according to reports. The transaction valued Flipkart at $35 billion, down from $38 billion as of 2021. Walmart holds around 80.49% stake in Flipkart as of July 2023, according to research and data platform Tracxn.

Overall, Walmart Inc beat Q2 2024 expectations, clocking consolidated revenue of $161.6 billion, up 5.7%. Walmart has revised expectations for its full-year consolidated net sales to increase by about 4-4.5%. The net income for Walmart for Q2 2024 jumped by 53% to $7.89 billion, compared to $5.15 billion, year-on-year. Ecommerce sales for Walmart US grew by 24% by strong curbside pickup and delivery.