Walmart boosts Flipkart holdings / Flipkart annual revenue growth / GameStop CFO resigns

Plus, Adidas to sell more Yeezys.

Inside Ecommerce For July 31, 2023

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Hi Insiders! We have some big stories today. First, we cover Walmart's decision to buy Tiger Global's remaining shares in Flipkart. We then explore data on Flipkart's annual revenue growth. In the third story, we cover the resignation of GameStop's CFO. Enjoy! Gregory p/Gregory_Bridgman

1 Walmart acquired Tiger Global's remaining stake in Flipkart. The buyout values Flipkart at $35B, down from the $38B valuation it attained in 2021. More: Tiger Global was an early backer of the Indian e-commerce platform Flipkart. Walmart paid $16B in 2018 for a 77% stake in the platform. Tiger Global continued to hold about 4% of the e-commerce firm. The Wall Street Journal reported on Sunday that it acquired Tiger Global's remaining stake for $1.4B.

2 What the numbers say: The annual revenue of Indian e-commerce platform Flipkart expanded from 28.4B rupees ($345M) in 2014 to 511.8B rupees ($6.2B) in 2022. Relevance: Established in 2007, Flipkart initially sold books online. The firm has since grown into one of the leading e-commerce companies in India. Tiger Global, a U.S.-based hedge fund, recently sold the last of its shares in Flipkart to Walmart for $1.4B. The hedge fund made a gain of $3.5B on a $1.2B investment in Flipkart between 2010 and 2015. What's next: Flipkart has depleted most of the $3.6B in funding it raised in 2021. The company will probably need additional capital to support its rapid growth rate.

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3 Diana Saadeh-Jajeh resigned as CFO of GameStop. Saadeh-Jajeh is the third person to serve in the role in the last two years. More: Saadeh-Jajeh joined GameStop in 2020. She was promoted to CFO in 2022 after Michael Recupero was fired from the position. Saadeh-Jajeh will leave the company on Aug. 11. Daniel Moore will serve as principal accounting officer and interim principal financial officer. Moore currently serves as GameStop's vice president of corporate global controller and vice president of global tax. GameStop has experienced a high turnover of executive leadership in recent years.

4 Adidas will release more of its Yeezy inventory in August. Some of the retailer's wholesale partners will participate in the release through their digital sales channels. More: Adidas partnered with Kanye West in 2013 and debuted the Yeezy shoe brand in collaboration with him in 2015. Adidas ended its partnership with Ye after the rapper made antisemitic remarks. Adidas decided to sell some of its remaining Yeezy inventory in May. The company's expected operating loss for 2023 fell by €250M ($275M) due to proceeds from the sale. Adidas said that a "significant amount" of the proceeds from both sales will go toward anti-hate organizations.

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5 Deckers' Q1 net revenue hit $675.8M, up 10% YoY. D2C sales rose by 35.3% across the company's brand portfolio. More: Decker's growth was led by its Hoka shoe brand. Hoka's Q1 net sales rose to $420.5M, up 27.4% YoY. The brand's D2C sales were up 63% YoY. All of Decker's other brands saw declines in quarterly sales.

6 Amazon launched a robotics center in Detroit. The 823,000 sq. ft. building is the e-commerce giant's first operations facility in the city. More: Amazon's robotics center uses newly developed warehouse automation technology. The facility supports Michigan's 13 delivery stations and 10 fulfillment and sortation centers. The launch comes after Amazon shifted its U.S. fulfillment network from a national model to a regional one. CEO Andy Jassy said the change aims to save costs and boost delivery speeds.

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Knowledge Hub Term of the Day Management Buyout: An acquisition where the company's existing management acquires the controlling stake from the existing owners is called a management buyout (MBO). Read More Question of the Week Have you ever regretted a career decision? What would you have done differently? Join the conversation

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Gregory Bridgman Writer / Editor Gregory Bridgman is an e-commerce researcher with a PhD. from the University of Cambridge. He also holds a Master of Science from University College London and a Bachelor's degree from the University of Cape Town.  Please follow me on Twitter or email me at gregory@inside.com. This newsletter was edited by Vibha Chapparike

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