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 per share, up from the prior range of $6.20 to $6.35 a share after third-quarter US comparable sales jumped by 9.2 percent.
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 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," said Chief Executive Doug McMillon.
Walmart beats US sales estimates on back-to-school demand, raises forecast
"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 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 percent compared with two years ago, the company said in a presentation Tuesday.
Net income for the quarter ending October 31 was at $3.1 billion, down 39.5 percent from the year-ago period due to a loss connected to paying down debt.
Revenues rose 4.3 percent to $140.5 billion.
Shares rose 1.3 percent to $148.81 in pre-market trading.
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