Home / Knowledge / News / Apparel/Garments / Flipkart purchase likely to affect Walmart income

Flipkart purchase likely to affect Walmart income

Sep '18
Flipkart purchase likely to affect Walmart income
The net income of US retail giant Walmart in the fiscal 2019 and 2020 is likely to be affected negatively due to the acquisition of Flipkart, said Walmart in its regulatory filing. In August this year, Walmart acquired approximately 77 per cent of the Indian e-commerce marketplace for around $16 billion cash, which includes $2 billion of new equity funding.

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

Must ReadView All

New EU rules for a fairer online economy apply from Jul 12

E-commerce | On 11th Jul 2020

New EU rules for a fairer online economy apply from Jul 12

The European Commission recently published a set of resources to help ...

Pic: Inditex

Retail | On 11th Jul 2020

Inditex to invest €2.7 billion for 2020-2022 plan

Inditex, a Spanish fashion retailer, has announced that to accelerate ...

Pic: Shutterstock

E-commerce | On 11th Jul 2020

ING Bank launches fashion marketplace in Romania

ING Bank, the fourth-largest bank by assets in Romania, launched its...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Tech in fashion industry has hit acceleration button

Amrit Sethia, SOIE

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Mario Castro,

Mario Castro

Fibraltex is an integral factory dedicated to the production of denim...

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Pierre Wiertz, EDANA

Pierre Wiertz

EDANA, the international association serving the nonwovens and related...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

<span style="font-size: 12px;">Designer Suman Nathwani talks about her...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search