The 'Big Billion Days' on Flipkart Boosts Walmart's international Q3 Sales Figure

Nitin Konde, Varun Bhardwaj

Nov 21, 2024 — 2 min read

Flipkart’s Big Billion Days Drives Walmart’s Q3 International Sales Growth

American retail giant Walmart said on 19 November that its third-quarter foreign sales were boosted by Flipkart's 'Big Billion Days' sales event in India. Walmart, which uses a fiscal year that runs from February to January, recorded sales of $31.5 billion from its overseas division, representing an increase of 12.4% in constant currency.

According to Walmart's earnings announcement, the timing of Flipkart's The Big Billion Days (BBD) event helped growth in Q3 and will have an effect on growth in Q4. Walmart International, which has operations in 18 countries outside of the US, including India, reported that Flipkart, Walmex (Mexico), and China were the top three nations in terms of sales growth.

Details of Q3 Sales’ Growth

Walmart International stated that marketplace and store-fulfilled pickup and delivery were the main drivers of the 43% increase in e-commerce sales in the third quarter. Furthermore, it stated that Flipkart spearheaded the 50% growth in Walmart International's advertising division. For the 2024 festive season, Flipkart's Big Billion Days sales event began on September 26 and ran through October 6.

However, Walmart also stated that the scheduling change of Flipkart's The Big Billion Days (BBD) sales event, which was held earlier, "partially offset" its overall gross profit. The Flipkart Big Billion Days sale in 2023 ended on October 8 and ran through October 15.

Gross Profit Rate and Overall Performance of the Company

Compared to the same period last year, the company's gross profit rate increased to 24.2% for the quarter. Walmart said that the schedule change of Flipkart's BBD sales event largely negated the increase. In the meantime, the shift in BBD scheduling caused Walmart International's gross profit rate to drop by 85 basis points. Growth in Q3 benefited from Flipkart's BBD event timing, while growth in Q4 will be impacted.

Flipkart reported last month that it received 7.2 billion visitors during this year's festive season. It further stated that over the festive season, vendors saw a 40–50% YoY increase. In the third quarter, Walmart's operating income was $6.7 billion. This was a 14% decrease from the $7.9 billion in the previous quarter, but an 8% gain over the $6.2 billion in the previous year. Flipkart is currently trying to reduce its losses and strengthen its top line. In the fiscal year 2023-24 (FY24), Flipkart Internet, the company's marketplace division, reported a 41% YoY decrease in its net loss to INR 2,358 Cr. Over the course of the year, its operating revenue increased by 21% to INR 17,907.3 Cr.

In 2018, Walmart paid $16 billion to acquire a 77% controlling stake in Flipkart. After that, it increased its ownership and currently holds more than 80% of the largest e-commerce company with its headquarters in Bengaluru.