The Global Walmart advertising business grew almost 30 percent in the June quarter (Q2), led by Flipkart Advertising and the US Ad Sales, said retail majors on August 16.
The company sees that Q2 revenue rises 8.4 percent to $ 153 billion and says that growth is partly driven by inflation. Flipkart owners see that his international sales rise 5.7 percent to $ 24.4 billion.
This registered strong sales growth in Mexico, Canada and China, each of them also grew faster than inflation. The company says seeing the strength in food and consumables in all markets and softness in public merchandise in several markets. E-commerce net sales accounted for 19 percent of the total net sales in the international market.
Walmart hoped that the consolidated net sales growth of around 5 percent in the September quarter (Q3), was negatively influenced by around $ 1.3 billion from currency fluctuations. This provides a guideline for a decline in consolidated operating income 8.0 percent to 10.0 percent in Q3.
The company on August 16 estimated a smaller decline in annual profits than those estimated to be less than a month ago, after a deep discount to clean up excessive merchandise, and the decline in fuel prices helped defeat expectations for quarterly sales.
The retailer frightened the market around the world last month when cutting profit estimates and warned that consumers withdraw discretionary purchases with a much greater speed than feared as a higher price for everything ranging from toothpaste to the gas inhibits the power of their expenses.
It forced Walmart to make steep discounts on goods such as clothes to try to reduce more than $ 61 billion inventory sitting at the end of the first quarter.
Walmart reported an $ 59.92 billion inventory at the end of the second quarter ended July 31 which was still 25 percent above last year’s level.
“Our actions to increase the level of inventory in the US along with a heavier mixture of sales in a grocery store put pressure on the profit margin for our Q2 and prospects for this year,” said executive chief Walmart Doug McMillon.
Blue-chip shares, which have fallen by more than 8 percent this year, rose 4 percent in the premket trade.