Walmart has today raised its annual sales and profit forecast in anticipation of soaring demand during the crucial end of year shopping season even as global supply chain woes hit its margins in the third quarter.
Major retailers including Amazon.com have been struggling to bring products into the US ahead of the peak shopping season due to shipping logjams, closed factories in parts of Asia and a scarcity of raw materials in the recent months.
Walmart, which has been chartering its own vessels to move goods, said US inventory was up 11.5% ahead of the busy festive season.
"We have the people, the products, and the prices to deliver a great holiday season for our customers and members," chief executive Doug McMillon said in a statement.
The bold forecast from Walmart come in contrast to rival ecommerce giant Amazon, which issued an underwhelming fourth-quarter outlook and warned of higher costs during the Christmas period to weigh on a surge in demand for online shopping.
Walmart said it expects full-year US same-store sales to be more than 6% higher than its previous forecast of a 5% to 6% rise.
Adjusted profit is expected to be around $6.40 per share up from a previous range of $6.20 to $6.35.
In the third quarter, sales at US stores open at least a year rose 9.2%, excluding fuel, benefiting from higher grocery demand and people buying more at stores. Analysts had estimated a gain of 7.04%, according to Refinitiv data.
However, gross profit rate decreased 42 basis points due to higher supply chain costs.
Walmart's total revenue grew by a better than expected 4.3% to $140.53 billion and on an adjusted basis it earned $1.45 per share.