In a statement, Walmart said its ‘international’ segment’s net sales were at USD 29.6 billion, an increase of 1.3 per cent, and that changes in currency rates had negatively affected net sales by approximately USD 1.1 billion.
“Excluding currency, net sales would have been USD 30.6 billion, an increase of 5 per cent, led by Flipkart, Canada and Walmex. Strong growth in net sales at Flipkart was helped by a record number of monthly active customers,” it added.
During the earnings call too, Walmart President, CEO and Director C Douglas McMillon noted the strong performance of its India units. “In India, Flipkart and PhonePe had strong results for the quarter. The number of monthly active customers for these platforms is at an all-time high,” he said.
The strong growth for Flipkart and its payment app, PhonePe, have come on the back of ‘Big Billion Day’ sales (held from October 16-21). E-commerce companies in general are witnessing strong growth in their business amid the pandemic as shoppers turn to digital platforms to maintain social distancing.
“Flipkart continues to perform well and recently completed its best-ever Big Billion Day sales event in October. Their third quarter Gross merchandise value (GMV) continued to reflect strong demand post-COVID lockdowns with significant growth in monthly active customers,” Walmart Chief Financial Officer and Executive Vice President Brett M Biggs said.
Flipkart, which competes head-on with Amazon in the Indian market, has been focussing on strengthening its presence in various categories like fashion and grocery. It is also investing aggressively in the Indian market and has announced picking up stakes in augmented reality company Scapic and premium youth-focused fashion firm USPL and buying Intellectual Property from Mech Mocha.
Flipkart Group has also made a Rs 1,500-crore investment in Aditya Birla Fashion and Retail Ltd (ABFRL), and Rs 260-crore investment in Arvind Youth Brands.
Walmart said its total revenue was at USD 134.7 billion, an increase of USD 6.7 billion. Consolidated operating income was USD 5.8 billion, an increase of 22.5 per cent.
“This was another strong quarter on the top and bottom line… We think these new customer behaviours will largely persist and we’re well positioned to serve customers with the value and experience they’re looking for,” McMillon said.