The news: Walmart raised its sales and profit forecast for the second time this year, driving shares to a record high as consumers saw strong demand for everyday goods amid high inflation.

The numbers: Shares rose as much as 8.4 percent to a record high of $74.43 on Thursday after the world’s largest retailer said price-conscious consumers were flocking to its stores in search of cheaper goods.

The company forecasts revenue growth of up to 4.75% for fiscal 2025, above the previous cap of 4%. Adjusted earnings per share are expected to be between $2.35 and $2.43, compared to the previous forecast of $2.23 to $2.37 per share.

In the U.S., Walmart’s comparable sales rose 4.2 percent in the three months ended July 31, beating the LSEG consensus average of 3.3 percent growth, with strong growth in non-essential items and e-commerce sales.

The retailer’s international sales rose 8.3%, thanks mainly to contributions from Walmex – its Mexico and Central America division – and China.

The context: The report shows that consumers are coping well with high prices and the highest credit costs in generations, while focusing on essentials and inexpensive purchases.

Walmart said it increased discounts on groceries and invested in its e-commerce platform, advertising and third-party marketplaces during the quarter.

In contrast, Home Depot cut its sales forecast earlier this week as customers appeared reluctant to spend money on major home improvement projects amid high interest rates and inflation.

What they said: “We’re not seeing a weaker consumer overall,” Walmart CEO Doug McMillon said on a conference call with analysts. “They want value. They want a wide range of products and services.”