Walmart has adjusted its net sales guidance for FY24, forecasting a range of 5 to 5.5 per cent, with adjusted earnings per share expected to fall between $6.40 and $6.48 in the same period. The delayed launch of its Indian ecommerce arm, Flipkart’s ‘Big Billion Days’ festive season this year allowed the company to enhance its consolidated gross margin. The ecommerce company’s gross margin saw a 32 basis points increase. However, the shift of Flipkart’s Big Billion Days sales from Q3 last year to Q4 this year negatively impacted overall and ecommerce sales growth.
The company reported a 3 per cent increase in international ecommerce sales, while advertising sales grew 4 per cent. Flipkart had set expectations to achieve a gross merchandise value of around Rs 33,000-36,000 crore during the festive season sale, which commenced on October 8 and concluded in November. In 2023, Flipkart conducted over half of the total festive season sales through online platforms, contributing to consistent sales growth, especially in sectors such as electronics, food, and groceries, recording double-digit growth over the previous year.
Walmart's international net sales for the year grew 5.4 per cent year-on-year to reach $26.7 billion, with strong performances reported in Mexico and China. The global advertising business experienced 20 per cent growth, with advertising sales from Walmart Connect and Sam’s Club MAP increasing 26 and 27 per cent, respectively.
The American company also recorded a significant improvement in its consolidated net income, reporting $453 million for the third quarter, compared to a loss of $1.79 billion in the same period last year. Consolidated revenue for the third quarter grew 5.2 per cent year-on-year to $160.8 billion. Adjusted earnings per share for the three months ending on October 31 were reported at $1.53.