Walmart Inc. says it is prepared to overcome widespread COVID-related challenges this holiday season thanks to its long history dealing with similar problems and some new tools that are keeping its systems running smoothly.<\/p>\n
Walmart WMT, -0.71% reported third-quarter earnings and revenue that beat Street estimates on Tuesday, and raised its full-year profit guidance. And while supply chain bottlenecks have delayed the movement of goods around the world, Walmart says its U.S. inventory is up 11.5% ahead of the holidays.<\/p>\n
Fighting inflation is in our DNA, said Doug McMillon, chief executive of Walmart, on the earnings call, according to a FactSet transcript. <\/p>\n
Walmart has served customers across economic cycles for more than 50 years.<\/p>\n
McMillon highlighted Walmarts efforts to maintain speedy delivery, and its broader initiatives, like Walmart GoLocal, the delivery-as-a-service business that counts Home Depot Inc. HD, +0.56% as a partner.<\/p>\n
See: Home Depot teams up with Walmarts GoLocal for speedy delivery service <\/p>\n
Walmart was among the large retailers like included Home Depot, Target Corp. TGT, -4.82% and others that chartered their own ships to transport merchandise as bottlenecks snarled traffic at ports and elsewhere in the supply chain.<\/p>\n
Also: Walmart, Target, Home Depot and other large retailers are chartering ships to bypass supply chain problems. Will the strategy save Christmas?<\/p>\n
In addition, the company has an advertising arm and Walmart Luminate, which launched in the U.S. and provides data and insight to merchants and suppliers, that it says are showing results.<\/p>\n
Stores and fulfillment centers are well staffed, and ourpriceposition remains strong, said Brett Biggs, Walmarts chief financial officer, on the call. <\/p>\n
Customers should expect to find the items they want at great values, and we are ready to serve them however they want to shop.<\/p>\n
Even with these additional areas of business, Walmarts bread and butter remains robust.<\/p>\n
Grocery sales were up nearly 10% as strong unit growth and low-to-mid-single-digit inflation benefited results, Biggs said.<\/p>\n
In fact, food sales grew $3.6 billion during Q3 which is the strongest quarterly growth in six quarters.<\/p>\n
BMO Capital Markets analysts highlighted the grocery market share gains in its post-earnings note. BMO rates Walmart stock outperform with a $170 price target.<\/p>\n
Read: U.S. retail sales jump 1.7%, but high inflation plays role<\/p>\n
Brent Ramos, director of product and services at marketing insight and analytics firm Adswerve, says the retail giants focus on data is helping it to grow.<\/p>\n
From shoppable live streams this holiday season to sponsored recipes on social media platforms and upgrading its online holiday delivery services, Walmart has been able to drive a constant stream of traffic and engagement to its site and app, Ramos said.<\/p>\n
CFRA rates Walmart stock buy with a $169 price target.<\/p>\n
Walmart is navigating the tough supply chain environment well[] which should result in a strong holiday season, Arun Sundaram wrote. <\/p>\n
We expect market share gains to continue since Walmarts price gap versus competition typically widens during periods of heightened inflation.<\/p>\n
Despite the positive results, Walmart shares slipped 2.6% in Tuesday trading. The stock is down 0.7% for the year to date. <\/p>\n
The Dow Jones Industrial Average DJIA, -0.49% has gained 18.1% for 2021 so far.<\/p>\n
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\n'Fighting inflation is in our DNA': Walmart says its pricing and inventory can deliver for the holidays - MarketWatch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"