Walmart (NYSE: WMT) reported positive third-quarter earnings on Tuesday, as shoppers steered towards its stores following continuous inflation. Throughout the last four quarters, the company has managed to surpass consensus EPS estimates three times. However, shares fell around 2% during morning trading.
According to the company’s CEO Doug McMillon, the retailer is hopeful regarding the upcoming holiday season and will keep its shelves stocked. Walmart’s U.S. Inventory has risen 11.5% as the season nears, McMillon says. The retailer made it a point to order its seasonal products early and has made space for the merchandise on ships.
“There’s a level of excitement in the air,” he said on the company’s earnings call. “You can feel it. I’ve been walking away from these stores with a recurring thought, ‘We’re ready, we have the people, the products, and the prices to deliver a great holiday season.’”
The multinational retailer reported earnings of UD1.45 per share, compared to the expected USD1.40 a share. Revenue amounted to USD140.53 Billion, higher than analysts anticipated USD135.60 Billion.
Inflation has continued to hit citizens from gas to grocery prices. According to the Commerce Department, annual inflation rose faster than it had in the last three decades.
“We’ve always been an inflation fighter for customers,” Walmart Chief Financial Officer Brett Biggs said in an interview with CNBC. “Our scale and the product breadth that we have allows us to do things in a way that is beneficial to customers and beneficial to shareholders.”