E-commerce giant Flipkart played a significant role in boosting its parent company Walmart’s international business growth, including for its advertising business which grew by 23% year-on-year, in its second financial quarter this year.
“Flipkart delivered double digit top line growth and more than doubled the number of units that delivered the same day,” said Walmart’s chief financial officer David Rainey, ET Retail reported. Rainey also stated that Flipkart increased its contribution margin by a significant amount during the past financial quarter. A contribution margin refers to when the price of a product is sufficient to generate money after the deduction of necessary costs.
Walmart reported a net sales total of close to $30 billion from its international markets in the July quarter. This represents an 8.3% year-on-year increase in its global markets, which include India. Walmart’s own operating revenue for the quarter stood at $1.4 billion.
“Operating income growth led by Flipkart, China, and Walmart… benefited from lower losses in e-commerce across markets,” announced Walmart in a presentation, ET Tech reported. Flipkart’s bottomline in its e-commerce business has been improving since June and this has given Walmart further confidence concerning its near future performance.
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