Walmarts promise of low prices proves to be a powerful draw in the third quarter [Video]

NEW YORK (AP) — Walmart is heading into the official start of the holiday shopping season with strong tailwinds after ratcheting up better-than-expected fiscal third-quarter sales in many items including toys, home goods and groceries.

The robust results, announced Tuesday, underscore how Walmart’s comparatively low prices have become a powerful draw for shoppers seeking to cut spending where they could in a still inflationary environment.

The nation’s largest retailer, based in Bentonville, Arkansas, also raised its outlook. The company’s shares rose more than 4%, or $3.67, to $87.75 in morning trading.

“We’re encouraged by the steady momentum building across the business,” Walmart’s Chief Financial Officer John David Rainey told analysts during Tuesday’s earnings call.

Walmart is among the first major U.S. retailers to report quarterly results and provides a peek into how Americans are feeling as they head into the holiday season. Rainey told The Associated Press during a call …