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Published
May 17, 2019
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Flipkart’s performance dilutes Walmart's global earnings but business reports it is in line with expectations

Published
May 17, 2019

Walmart has reported that its international business saw profit dip in its February to April quarter, mainly due to the impact of Flipkart on expenses, interest, and debt. However, Walmart continues to express confidence in the Indian business.

Flipkart may have affected Walmart’s profit margins this past quarter but the business remains optimistic - Flipkart


Walmart has reported that although Flipkart’s business has affected its global results, this is in line with its expectations. Walmart’s international operating income declined by 38 percent in constant currency terms and by 42 percent on a reported basis during the first quarter of its financial year which runs from February to January. 

“A large part of the decline was due to dilution from Flipkart, which was expected, partially offset by the de-consolidation of Brazil,” Walmart CFO Brett Biggs said in the business’ recent management commentary statement on its first quarter results.

“I continue to be excited about the opportunity with Flipkart and PhonePe,” said Walmart’s CEO Doug McMillon in the same statement. “I’m impressed with the team and their ability to innovate for customers with speed.”

McMillon recently visited India to speak with Flipkart employees where he expressed his commitment to the online business. Walmart acquired Flipkart and its fashion subsidiary Myntra-Jabong a year ago.

 

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