Walmart’s Q4 Gross Margins Benefit From Flipkart’s Big Billion Sale

SUMMARY

Walmart CFO John Rainey said that Flipkart’s BBD event “negatively affected” the retail giant’s YoY sales comparisons in Q4 2024

Flipkart’s BBD sale in 2024 was held between September 27 and October 6, thereby splitting sales between two quarters

Walmart’s international net sales jumped more than 5.7% to $34.3 Bn in Q4 2024 from $32.4 Bn in the year-ago period

Walmart’s chief financial officer (CFO) John David Rainey said that Flipkart’s annual Big Billion Days (BBD) sale “benefitted” the gross margins of the retail giant’s international business during the fourth quarter (Q4) of 2024.

“… Gross margins in international *business) benefited from the timing shift of Flipkart’s Big Billion Day event,” Rainey said during a post-earnings call on Thursday (February 20).

The Walmart CFO also noted that Flipkart’s BBD event “negatively affected” the company’s year-over-year sales comparisons in Q4 2024.

It is pertinent to note that Flipkart’s BBD sale in 2024 was held between September 27 and October 6, thereby splitting sales between two quarters.

In its investor presentation, Walmart said, “Timing of Flipkart’s The Big Billion Days (“BBD”) event, which shifted from Q4 last year to majority in Q3 this year impacted growth in Q4 with a corresponding benefit in Q3.”

Walmart’s international net sales jumped more than 5.7% to $34.3 Bn in Q4 2024 from $32.4 Bn in the year-ago period. On similar lines, the presentation noted that the retail giant’s global ecommerce sales jumped 4% during the quarter under review.

Meanwhile, Walmart CEO Doug McMillon reiterated that PhonePe has kicked off preparations for its initial public offering (IPO).

“We also performed well in India. And I’d like to share the news that PhonePe, our fintech business, is making preparations for an IPO in India. Our PhonePe team has long aspired to be a public company, and we’re excited to be taking these early steps,” McMillon said.

Chiming in, Walmart International’s president and CEO Kathryn McLay added, “The PhonePe business hit $1.7 Tn TPV (total payments volume) by the end of January 31 and they have something like 310 Mn transactions daily. It’s a very strong business, and we’re excited to make the announcement that they are going to commence their preparation toward IPO. That’s a significant milestone for PhonePe.”

This followed PhonePe’s announcement, earlier in the day, that it has already kicked off preparations for an IPO on Indian exchanges. The fintech company said that this is a suitable time for it to go public owing to its strong top line and bottom line growth in the fiscal year 2023-24 (FY24).