Net sales at Walmart International increased by 2.3% year-on-year (y-o-y) to $33 billion in Q4FY20, the US-based retailer said in a statement.
Walmart on Tuesday said Flipkart led its e-commerce sales in the international segment. E-commerce contributed about 12% of the total segment sales in the three months ended January 2020. Net sales at Walmart International increased by 2.3% year-on-year (y-o-y) to $33 billion in Q4FY20, the US-based retailer said in a statement.
Sales for the the year to January 2020 stood at $120.1 billion against $120.8 billion in FY19, a fall of 0.6%. Operating income in the international segment dropped to $1.1 billion in Q4FY20 against $1.2 billion in Q4FY19, a decline of 5.6%. Walmart attributed the fall in operating income to “disruption in Chile”.
Walmart’s financial calendar runs from February to January. “We experienced softness in some key international markets, as well as in Chile, where unrest led to disruption in the majority of our stores. “Walmex, China and Flipkart all had a solid quarter,” Walmart chief financial officer Brett Biggs said.
In May 2018, Walmart announced purchase of a 77% controlling stake in Indian e-commerce major Flipkart in a hefty $16-billion deal, valuing the e-commerce firm at around $21 billion.
Flipkart and Amazon jointly hold 80% of India’s e-commerce sector.
“We are excited about what’s happening at Flipkart and PhonePe. The Indian market represents a significant opportunity for growth,” Walmart president & CEO Doug McMillon had earlier said.
Under Walmart, Flipkart is expanding into the food retail segment — late last year, it registered a firm, Flipkart FarmerMart, to undertake the business.
Leveraging Walmart’s established network of supply chain, vendors and logistics, the e-commerce firm will be able to get a leg up in the crowded space and ramp up the business quickly, analysts say.
Total revenues at Walmart rose to $141.7 billion in Q4FY20 against $138.8 billion in the year-ago quarter. Total revenues increased to $524 billion in FY20 against $514.4 billion in FY19.