Flipkart saw double digit growth in first quarter: Walmart

Walmart

Walmart-owned Flipkart saw double digit growth in the first quarter, as did the retailer’s China and Mexico divisions, which led to strong international sales growth for the company in Q1.

The US retailer’s international net sales grew 12.9 percent in constant currency terms to $26.6 billion during the quarter.

PhonePe, which is also majority-owned by the US retail major and was recently hived off from Flipkart, crossed an annualised payments volume of $1 trillion, according to Walmat filings.

"In India, Flipkart had strong topline results and continued to increase its contribution profit. The team continues to expand their products and services. For example, Flipkart launch bus transportation services on the platform through Cleartrip and already is capable of offering 1 million bus connections to customers," Walmart CFO John David Rainey said in a conference call.

"The international ad business continued to show strength, led by Flipkart's ad business, which was up over 50%," he added.

Walmart reported net income of $1.67 billion, or 62 cents per share for the three month period ended April 30. Earnings, adjusted for non-recurring costs, came to $1.47 per share, far exceeding the per-share earnings of $1.32 that Wall Street was looking for, according to a survey by FactSet.

That compares with $2.05 billion, or 74 cents per share, in the year ago period.

Sales rose 7.6% to $152.3 billion, also topping estimates.

Comparable store sales those from established stores and online operating over the past 12 months -- at Walmart's namesake division rose 7.4%, a bit slower than the 8.3% during the fourth quarter but still solid. It posted an 8.2% gain in the fiscal third quarter.

Online global sales rose 26% in the first quarter, an acceleration from the 17% in the previous quarter.