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.

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.

Walmart ratcheted up sales and profits again in the third quarter with its comparatively low prices proving a powerful draw for shoppers seeking to cut spending where they could