(TheDailyHorn.com) – On Tuesday, November 16, Walmart shares took a dive as the company said supply chain and labor costs cut into its third-quarter profits. Still, there was some good news. The world’s largest retailer managed to increase its annual sales and profit forecast moving forward.
Walmart is one of a small number of companies that bypassed traditional supply chain shipping by chartering its own fleet to ensure products made it to US shores in time for Christmas.
Walmart raises full-year sales, profit forecasts as holidays start strong https://t.co/ouSPZmwcYM
— Jonathan Chevreau (@JonChevreau) November 16, 2021
It appears the effort may be paying off for the giant retailer at a time when other companies are still suffering supply chain shortages. Company executives believe store shelves will be plentifully stocked the rest of the year, giving Walmart a competitive advantage over other retailers, including Amazon, which is predicting worse-than-expected fourth-quarter figures.
The behemoth company said its US in-store sales rose 9.2% for the third quarter, not including fuel. Walmart officials said the surge in demand for groceries and people making more purchases in-store contributed to the company’s positive performance. So far, the corporation is using its massive wholesale purchasing power to hold back price increases on consumers. Walmart said it expects its growth in in-store sales to exceed its previous 5% to 6% forecast. Company analysts are basing this prediction largely on a surge in holiday demand for toys and apparel.
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