The supply chain crisis isn’t slowing down Walmart.
America’s largest retailer and a bellwether of consumer spending reported strong sales growth during its most recent quarter. The company also raised its annual sales and profit growth, a signal that it’s expecting a strong holiday shopping stretch.
Walmart on Tuesday said sales at US stores open for at least one year increased 9.2% during the three months ending October 31 compared with the same period a year ago. The company raised its full-year sales guidance, expecting sales to come in above 6% for the year.
Walmart has used its enormous size and clout to navigate supply chain and inflationary pressures.
Several large retail chains, including Walmart, have chartered their own ships to deliver goods from Asia, stocked up on extra merchandise and relied on their deep pockets and broad supplier bases to adjust to supply constraints. Those options are too expensive and inaccessible for most small shops, which typically have less financial flexibility to absorb higher costs and keep prices down for customers than large competitors.
Although many stores are struggling to get products, Walmart’s inventory levels increased 11.5% last quarter from with the year prior as the company stocked up ahead of the holiday stretch.
“We have the people, the products, and the prices to deliver a great holiday season for our customers and members,” Walmart CEO Doug McMillon said in a statement Tuesday.
Walmart’s stock was up slightly in premarket trading.
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