The limited operations of Flipkart in India for a portion of the first quarter have negatively affected the growth of Walmart’s international business. This was because of the government’s regulation allowing e-commerce firms to only sell essential items during the lockdown to contain Covid-19. However, e-commerce contributed 9 per cent of total segment net sales of Wal-Mart International, the segment that consists of the retail giant’s operations outside the US, was led by growth in China, Canada, the UK, and Mexico.
The company’s overall net sales and operating results were significantly affected by the outbreak of Covid-19. Walmart’s total revenue was $134.6 billion, an increase of $10.7 billion, or 8.6 per cent for Q1FY21. Excluding currency, total revenue would have increased 9.7 per cent to reach $135.9 billion.
The operating income of Walmart International increased 9.2 per cent on a reported basis and 15.6 per cent in constant currency. The effects of changes in currency rates negatively affected operating income by approximately $47 million. Growth of Walmex and Canada, along with the effects of the company’s Flipkart business in India, was partially offset by a decline for supermarket retailer Asda in the UK and China.