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.

The company, a bellwether for the retail industry, said its U.S. sales rose 5 percent in the third quarter, as cost-conscious consumers of all incomes sought bargains.

Walmart said U.S. sales rose during the most recent quarter as shoppers bought more groceries, home goods and toys, a sign that spending is off to a steady start at the start of the holiday shopping season.

Walmart on Tuesday raised its annual sales and profit forecast for the third consecutive time, with people buying more groceries and merchandise online and at its stores, a sign that it may be gaining market share ahead of the holiday season.