Walmart CFO John David Rainey revealed that expanding quick commerce capabilities in India negatively impacted Walmart International’s gross profit margin for the quarter ending July 2025 (Q2). He cited pressure from channel and format mix, strategic pricing investments across markets, and quick commerce investments in India as key factors. Additionally, growth spending in India, Canada, and Mexico affected operating income, which declined 2.8% year-over-year to $1.3 billion, despite a slight 1.7% rise in gross profit to $6.7 billion.
Walmart International CEO Kathryn McLay highlighted Flipkart’s 300 “minute” fulfillment centers (MFCs) that deliver within 15 minutes, along with Myntra’s 60 MFCs offering deliveries under 30 minutes. This positions Walmart to capitalize on quick commerce growth by placing third-party inventory closer to consumers.
Flipkart also drove a 15% year-over-year growth in Walmart’s international advertising business. With Flipkart aiming to launch 800 dark stores by year-end, significant cash burn is expected ahead of its IPO next year.
