The whole world was frozen when Walmart published about lowering their earnings for the coming year 2019. We all know that it had been under too much stress over their big acquisition with the most famous Indian online retailer Flipkart.
They had bought over 77% of their stake in Flipkart for over 16 billion whopping dollars in early 2018. This was the biggest ever proposition ever made in the history of share business.
Walmart has always been a rival with the Amazon company. Buying a share with Flipkart was a queen move for Walmart after they bought jet.com for 3.3 billion dollars in the year 2016.
They also had lowered their forecast with adjusted earnings per share to $4.65 to $4.80 with an estimated range of $4.90 to $5.05.
The forecast cuts are no peekaboo’s withFlipkart’s highest price tags, said eMarketer analyst Andrew Lipsman. The investment in the Indian e-commerce market is also very worthwhile as it comes at a great rate for India’s economy, which has been always significantly money oriented.
“Anyone who was going to acquire Flipkart knew it would take time for the investment to pay off. The Indian e-commerce market is much further along. It’s much more ready for something like this to happen than it was five or 10 years ago.”Lipsman said.
Walmart earlier said that they are focusing on opening over 300 retail stores in abroad by the next year. China, Mexico, and Central America are at their eyes for these shops.
The estimated net international sales growth will be around 5%, including the positive effect of Flipkart and the damage from the de-consolidation of Walmart Brazil.
In 2020, the company is also predicting their U.S. sales to grow and jump to 3%+. The sales growth to rise between 2.5% and 3%.