Walmart’s Q4 Growth in the December quarter faced challenges due to the timing shift of Flipkart’s flagship sale event, The Big Billion Days (TBBD). Unlike the previous year, when the sale primarily took place in Q4 (October-December), the event was held mostly in Q3 (July-September) this time. This shift impacted year-over-year (YoY) sales comparisons and resulted in flat growth for Walmart’s international revenues.
Walmart reported that its net sales for the international segment grew by only 0.7 percent YoY, reaching $32.2 billion in Q4. Despite strong e-commerce sales in other markets outside India, which grew by more than 20 percent, the shift in Flipkart’s sales period influenced overall figures.
Walmart’s Q4 Growth report highlighted that international e-commerce sales grew by 4 percent and its advertising business expanded by 10 percent. However, both segments were affected by the timing of Flipkart’s TBBD sale. While Walmart’s other global markets, including China, Mexico, and Canada, witnessed strong growth due to their respective festive events, the delay in Flipkart’s peak sale period impacted revenues from India.
Walmart, which expanded its presence in India in 2018 through its acquisition of Flipkart, sees the country’s festive shopping season as a crucial time for e-commerce sales. The months from September to November are particularly significant for platforms like Flipkart and Amazon, as nearly 50 percent of their annual gross merchandise value (GMV) is generated during this period.
Flipkart’s Big Billion Days sale typically occurs in October, from October 8 to 15 in 2023. However, in 2024, it was scheduled earlier, from September 27 to October 6. This change boosted Walmart’s Q3 revenues, leading to an 8 percent YoY increase in net sales for the September quarter.
Despite the impact on Q4 revenue, the shift contributed to a better gross profit rate for Walmart in the December quarter. The company’s gross profit rate improved by 53 basis points YoY, reaching 23.9 percent. Flipkart remains the dominant player in India’s e-commerce market and has consistently been recognized as a key unit for Walmart since its acquisition. The platform frequently receives attention in Walmart’s global earnings reports as one of its strongest-performing divisions.
Beyond Flipkart, Walmart’s Q4 Growth in India is also being driven by its fintech business, PhonePe. The digital payments company has now initiated preparations for an initial public offering (IPO) in India. Walmart’s leadership has acknowledged that PhonePe has long aimed to become a public company, and the firm is now taking early steps toward this goal.
PhonePe was initially acquired by Walmart in August 2018 as part of the Flipkart acquisition. It functioned as a subsidiary of Flipkart until December 2022, when it separated and redomiciled from Singapore to India. Now, with its IPO plans underway, PhonePe is set to become another key driver of Walmart’s business expansion in India.
While the shift in Flipkart’s Big Billion Days schedule affected short-term growth in Q4, Walmart continues to see long-term potential in both its e-commerce and fintech ventures in India. With Flipkart’s strong market presence and PhonePe’s upcoming IPO, Walmart’s Q4 Growth investment in the Indian market remains a strategic priority.
