America’s biggest offline retailer, Walmart Stores Inc., has reported better than expected financial results in the first quarter of fiscal 2018-19.
During the quarter under review, the retailer reported a 4.1 per cent increase in revenue to US $ 136.3 billion. The increase in e-commerce sales contributed significantly to revenue growth.
Profit for the quarter under review stood at US $ 2.13 billion. Revenue for the reporting period totaled US $ 122.69 billion against the expected revenue of US $120.08 billion.
The retail giant reported 2.1 and 0.8 per cent increase in comparable sales and comparable traffic in its US operations, respectively.
Net sales from international operations reported an 11.7 per cent increase in the quarter under review. The retailer reported positive comparable sales in eight of its eleven markets, markedly.
Operating income for the quarter under review temained US $ 5.2 billion. Walmart’s e-commerce sales in the US reported a 33 per cent increase during the reporting quarter.
The retailer, which has been focussing to expand its presence in India, inked definitive agreements to become the largest shareholder in Indian e-commerce retailer Flipkart. It would make a payment of around US $16 billion for an initial stake of approximately 77 per cent.
It is focussed to build ‘foundation for future growth not profitability’ in the country. Walmart sees India as the most attractive market at a time when various nations across the globe are going through an economic slowdown.
Additionally, notably, Walmart also revealed its plans to increase its physical retail store count in India to 70 by 2022 from its current count of 21 Best Price wholesale stores in 9 states.
