Walmart said U.S. sales rose during the most recent quarter, propelled by shoppers buying groceries, home goods and toys—a sign that spending is off to a steady start this holiday season. The retail giant raised its sales and profit estimates for the year.

The bellwether retailer reported higher-than-expected sales in its latest quarter and upgraded its forecast for the rest of the year.

Walmart on Tuesday raised its annual sales and profit forecast for the third consecutive time, as people bought more groceries and merchandise, a sign the world's largest retailer continues to gain market share ahead of the holidays.