Walmart reports significant decline in February-April operating profit on Flipkart inclusion
US-based retail giant Walmart Inc. said it clocked a significant decline in global operating profit for the February-April quarter from a year earlier as the inclusion of Flipkart in this year’s financial performance offset strong sales from Walmart US and Sam’s Club stores and deconsolidation of Brazil. Also, the dilution from acquired homegrown e-commerce firm Flipkart was expected, Walmart said.
Walmart’s financial year is from February to January.
International operating profit was down 38% at $790 million in constant currency and 42% on a reported basis at $738 million.
Revenues rose one per cent to $124 billion, missing analyst estimates of $125 billion, because of a negative currency impact of $1.9 billion, the firm said. Earnings per share of $1.13 beat estimates of $1.02.
International sales fell five per cent to $28 billion.
Referring to his visit in April this year, company CEO Doug McMillon said, “I got to visit our teams in India and China a few weeks ago. I continue to be excited about the opportunity I see with Flipkart and PhonePe. I’m impressed with the team and their ability to innovate for customers with speed.”
The earnings report also made a note of the $60-100 million Flipkart Venture Capital Fund launched in March to be headed by Flipkart group CFO Emily McNeal and the super app solution launched on Flipkart-owned mobile wallet PhonePe. It also stated the launch of PhonePe as a payment option for Walmart's cash-and-carry stores in India.
Walmart gave $3.7 billion through dividends and share repurchases during the quarter, recording a significant rise in share repurchases from a year earlier.