On Tuesday, Walmart Inc., the Bentonville, Arkansas-headquartered world’s No 1 brick-and-mortar retailer, had raised full-year profit and sales forecast amid a sharp pick-up in demands of a swathe of consumer goods ranging from apparel to electronic items to child’s playthings over an all-important holiday season, however, a lingering supply chain constrain alongside shortages of raw materials appeared to have poured fresh scorns on its profit margins during third quarter.
Still, the Arkansas-based American multinational retailing industry behemoth’s third-quarter sales at US stores rose 9.2 per cent compared to the same time a year earlier. Nevertheless, Walmart Inc’s upbeat holiday quarter forecast came forth as a number of major retailers like of Amazon.com Inc., the world’s largest online retailer, had reportedly been scuffling to bring in new products due to a jammed shipping line, a stabbing shortage of raw materials alongside a mass-scale shutdown of factories in parts of Asia.
Nonetheless, despite a teetering supply chain disruption, Walmart continued to sell products at a low price which eventually had lured in more shoppers into its in-house stores and helped report a substantial scale of increase in sales over third-quarter on an annualized basis.
Aside from that, in contrast to other US-based multinational retailers, Walmart Inc seemed to have weathered a catastrophic supply chain disruption much better than its peers by capitalizing on its own vessels to ship goods and had managed to ramp up its inventories by 11.5 per cent ahead of a busy holiday season.
Meanwhile, adding that the retailing industry tycoon had hired more than 200,000 workers to cope up with the holiday rush, Walmart Inc Chief Executive Doug McMillon said, “We have the people, the products, and the prices to deliver a great holiday season for our customers and members”.
Walmart raises full-year profit forecast
According to Walmart Inc’s earnings’ report for July-to-September quarter, the Bentonville-headquartered company had been expecting its holiday quarter sales to grow by 6.0 per cent, above a prior estimate between 5.0 per cent and 6.0 per cent.
Nonetheless, due to a low-price stratagem alongside an increase in expenses to ship products, Walmart’s profit margin over third-quarter fell as much as 42 per cent compared to the same time a year earlier. However, Walmart Inc’s total revenue grew by 4.3 per cent to $140.53 billion and its Q3 earnings stood at $1.45 per share, about 5 cents above a Wall Street estimate.
Followed by the release of its quarterly earnings’ report, Walmart Inc shares’ prices tumbled 2.32 per cent to $144.47 apiece.