The Flipkart acquisition once again negatively impacted Walmart International’s operating income which dropped to $600 million in the third quarter ending September from $1.2 billion a year-ago quarter a massive drop of 46.2 per cent. Operating income declined 5.4 per cent or 4.1 per cent in constant currency due in part to a non-cash impairment charge for Walmart International.
“As expected, the inclusion of Flipkart negatively affected operating income,” the company said in a statement. Net sales at Walmart International were $29.2 billion an increase of 1.3 per cent.
The inclusion of Flipkart and strength in Walmex and China were partially offset by softness in the UK, said the company. In the second quarter, the operating income of Walmart’s international operations fell by 29.3 per cent to $893 million while net sales declined marginally to $29.13 billion. Walmart wrapped up Flipkart’s acquisition for $16 billion in 2018, which made it the world’s biggest e-commerce deal. The company, however, was bullish on record sales it achieved during Flipkart’s “The Big Billion Day” festive sales in India.
“We celebrated the first anniversary of Flipkart and PhonePe as part of the Walmart family. It was great to see record sales in India during The Big Billion Days event,” said Doug McMillon, President and CEO, Walmart.
“Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers,” he added.
