Flipkart purchase likely to affect Walmart income

Beginning in the third quarter of fiscal 2018, we will consolidate the financial statements of Flipkart using a one-month lag. "Given the recent closure of the transaction, the company is in the initial stages of the process to allocate the purchase price of Flipkart and does not yet have an initial allocation available. We also expect the ongoing operations of Flipkart to negatively impact fiscal 2019 and 2020 net income, including additional interest expense due to the long-term debt issuance in the second quarter of fiscal 2019," said Walmart.

The total outstanding long-term debt balance increased $12.3 billion for the six months ended July 31, 2018, primarily due to the net proceeds from issuance of long-term debt to fund a portion of the purchase price for the Flipkart acquisition and for general corporate purposes, the filing said.

"Through innovation, we are striving to create a customer-centric experience that seamlessly integrates digital and physical shopping into an omni-channel offering that saves time for our customers. Physical retail encompasses our brick and mortar presence in each of the markets in which we operate. Digital retail, or e-commerce, is comprised of our e-commerce websites, mobile commerce applications and transactions involving both an e-commerce platform and a physical format, which we refer to as omni-channel," Walmart added. (RR)

Fibre2Fashion News Desk – India