Flipkart Big Billion Days sale best ever: Walmart CEO
Flipkart's The Big Billion Days sale had a positive impact on the revenue of Walmart’s international business but it also brought down the gross margins.
Walmart CEO Doug McMillion described the annual sales event of its Indian ecommerce subsidiary as the “best Big Billion Days ever” at the conference call of the company’s fourth-quarter results of FY24.
Flipkart's Big Billion Days sale was held in October 2023, and had said during its third-quarter results that the sale would positively impact the company in its Q4 performance.
“The timing of Flipkart’s The Big Billion Days positively affected growth for Q4,” Walmart said in its earnings release.
Flipkart comes under the international business division of Walmart and this segment reported net sales of $32.4 billion, which was an annual growth of 17.6%. The other geographies under its international business include Mexico and China.
Walmart said ecommerce sales from its international business grew by 44% led by the marketplace and omnichannel offerings. The advertising business grew by 76% led by Flipkart and Walmex, Walmart's Mexican operations.
Walmart CFO John David Rainey said during the conference call that the company expects Flipkart to record compounded double-digit growth in the coming years.
However, the global retailer’s gross margin was impacted by 39 basis points largely due to the shifting of Flipkart’s BBD from the third quarter to the fourth quarter.
Walmart registered a revenue of $173.4 billion for the fourth quarter of FY24, which was an annual growth of 5.7%. However, the net profit declined by 12.4% during this period to $5.49 billion.
Walmart's fiscal year runs from February 1 to January 31 of the following year.
Walmart also announced the acquisition of smart TV maker VIZIO for $2.3 billion. According to the company, the acquisition would enable it to connect with and serve its customers in new ways, including innovative television and in-home entertainment and media experiences.
Walmart also said that it would create new opportunities to help advertisers connect with customers.
Edited by Kanishk Singh