Walmart reports third-quarter earnings on Tuesday topped analysts’ expectations as price-sensitive grocery shoppers flocked to its stores amid rising costs for household staples. The company shares are down about 2% early Tuesday.
The retailer’s size is helping it manage through snarled supply chains, as it negotiates with manufacturers, bulks up its inventory and charters its own ships to move goods across the globe. raised its forecast for the year, saying adjusted earnings per share will be around $6.40 versus its prior expectations of between $6.20 and $6.35.Walmart CEO Doug McMillon said the retailer is optimistic about the holidays and will have shelves stocked. Inventory for in the U.S. is up 11.5% ahead of the busy shopping season, he said.
Walmart same-store sales in the U.S. grew by 9.2%, excluding fuel, higher than the 6.9% expected by a StreetAccount survey. The company’s e-commerce sales in the U.S. grew 8% versus the year-ago quarter — or 87% on a two-year basis. Inflation is hitting consumers as they go about daily routines, from filling up the gas tank to stocking the refrigerator. Annual inflation rose at its fastest pace in more than three decades in September.