Walmart Inc. says it’s ready to tackle common COVID-related challenges this holiday season thanks to a long history of dealing with similar issues and a number of new tools that keep their systems running smoothly. minus.
report third quarter earnings and revenue beat Street estimates on Tuesday, while lifting full-year profit guidance. And while supply chain bottlenecks have delayed the movement of goods around the world, Walmart said its US inventory rose 11.5% ahead of the holiday season.
“Fighting inflation is in our DNA,” said Doug McMillon, Walmart chief executive officer, of earnings, according to FactSet transcripts.
“Walmart has served customers through business cycles for more than 50 years.”
as a partner.
Walmart is among major retailers like Home Depot, Target Corp.
and others charter their own ships to transport goods when congestion clogs up traffic at ports and elsewhere in the supply chain.
Additionally, the company has an advertising arm and Walmart Luminate, which launched in the US and provides data and insights to merchants and vendors, which the company says is showing results.
“Our stores and fulfillment centers are well staffed and our pricing position is stable,” said Brett Biggs, Walmart’s chief financial officer, Brett Biggs, chief financial officer. , said.
“Customers should expect to find the items they want at great value, and we’re here to serve them the way they want to shop.”
Even with these additional businesses, Walmart’s bread and butter is going strong.
“Grocery sales were up nearly 10% as strong unit growth and single- to mid-digit inflation benefited the results,” Biggs said.
“In fact, food sales grew by $3.6 billion in the third quarter, the strongest quarterly growth in six quarters.”
BMO Capital Markets analysts highlighted the increase in grocery market share in its post-earnings note. BMO rates Walmart stock better with a $170 price target.
Brent Ramos, director of product and services for marketing insights and analytics firm Adswerve, says the retail giant’s focus on data is helping it grow.
“From shoppable live streams this holiday season to sponsored recipes on social media platforms and an upgrade to online holiday delivery, Walmart,” said Ramos. was able to drive a steady stream of traffic and engagement to its website and apps.
CFRA rates Walmart’s stock buying with a $169 price target.
“Walmart is navigating a difficult supply chain environment well[…] Arun Sundaram wrote.
“We expect market share to continue to grow as Walmart’s price gap with competition often widens during periods of high inflation.”
Despite the positive results, shares of Walmart fell 2.4% in Tuesday’s trading. As of now, the stock is down 0.6%.
Dow Jones Industrial Average
has so far increased by 18.5% for 2021.
https://www.marketwatch.com/story/fighting-inflation-is-in-our-dna-walmart-says-its-pricing-and-inventory-can-deliver-for-the-holidays-11637092794?rss=1&siteid=rss | ‘Fighting inflation is in our DNA’: Walmart says its prices and inventory can provide for the holidays