Walmart’s Q3 gross margins rise as Flipkart’s annual sale event shifts to Q4

economictimes.indiatimes.com:

Walmart reported an uptick in its consolidated gross margin, attributed to the delayed launch of its Indian ecommerce arm Flipkart's Big Billion Days (BBD) festive season this year.

“Consolidated gross margin rate up 32bps (basis points) positively affected by a slight improvement for Walmart US and timing of Flipkart’s The Big Billion Days (“BBD”) event, which flipped from Q3 last year to Q4 this year,” a bullet point in the company’s October quarter earnings statement noted.

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However, Walmart acknowledged that the timing of Flipkart’s BBD event, which moved from Q3 last year to Q4 this year, negatively impacted overall and ecommerce sales growth. Its international ecommerce sales declined 3%, while advertising grew 4%, both influenced by the timing of BBD, the company said.

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On October 24 ET reported that Flipkart may achieve around Rs 33,000-36,000 crore in gross merchandise value during the festive season sale, which commenced on October 8. The festive season is crucial for ecommerce majors, including Flipkart, Amazon and others, as their sales surge during this period. Flipkart's festive season sale concluded earlier this month.

In 2023, after a slow beginning to the year, the festive season provided a vital upswing in online shopping. Over half of the total festive season sales were conducted through online platforms. Ecommerce firms observed a consistent increase in sales,