(Reuters] -Walmart Inc. on Tuesday increased its annual sales projection and profit forecast to meet the demand for high quality holiday merchandise, despite global supply chain issues that hampered its margins in its third quarter.

Amazon.com (NASDAQ) and other major retailers have struggled to get products to the United States in time for peak season. This is due to shipping delays, closed factories in Asia, and scarcity of raw material in recent months.

Walmart (NYSE) said that its U.S. inventory rose 11.5% in the festive season, despite it chartering vessels for goods transportation.

Doug McMillon, Chief Executive Officer, stated that “we have the people and products to deliver an amazing holiday season for customers and members.”

Walmart’s bold prediction is in stark contrast to Amazon who issued a disappointing fourth quarter outlook. Amazon also warned that higher prices during holidays would lead to an increase in online shopping demand.

Walmart indicated that full-year U.S. Same-Store Sales will be more than 6% greater than the previous forecasts of a 5-6% increase. The adjusted profit will be $6.40 per share, up from $6.20-6.35 in the past.

Sales at U.S. retail stores that are open less than a year increased 9.2% in the third quarter. Based on Refinitiv data, analysts expected a gain between 7.04% and 7.04%.

Due to increased supply chain costs, however, the gross profit margin fell by 42 basis points.

Walmart reported a 4.3% increase in total revenue to $140.53 Billion, which is better than the expected. The adjusted share price was $1.45.

In premarket trading, the company’s stock rose by about 1% to $148.24