NEW YORK: Walmart lifted key profit forecasts on Tuesday; following another solid quarter and expressed confidence it would have sufficient inventories for the holidays, despite global supply chain snarls.
The big-box chain now projects full-year adjusted earnings of $6.40/share, up from the prior range of $6.20 to $6.35 a share after the third quarter US comparable sales jumped 9.2 per cent.
The biggest retailer in the world acknowledged higher costs connected with shipping and supply chain pressures, but said it had built up additional stockpiles of goods to meet the demand.
Walmart has also reduced markdowns on goods, helping to offset profit pressure in an inflationary environment.
“Our momentum continues with strong sales and profit growth globally,” chief executive Doug McMillon said.
“Looking ahead, we have the people, the products, and the prices to deliver a great holiday season for our customers and members.”
Confronted with backlogs at the US ports, Walmart has been among the giant retailers to charter their own ships and route them to smaller ports.
Inventories at Walmart’s US business are up 17 per cent, compared with two years ago, the company said in a presentation on Tuesday.
The net income for the quarter ended October 31, 2021 stood at $3.1 billion, down 39.5 per cent from the year ago period due to a loss connected to paying down debt. Revenues rose 4.3 per cent to $140.5 billion.
Meanwhile, Walmart shares rose 1.3 per cent to $148.81 in the pre-market trading.