Walmart delivered another stunning result on Thursday, reporting a 4.8% year-over-year increase in quarterly revenue to $169.3 billion. Second-quarter sales rose 4.2%, beating analyst estimates. The retail giant raised its forecast for the rest of the year to 4% from 3% and expects sales to rise 3.75% to 4.75% in 2024.

Walmart has not experienced a weakening consumer sentiment, as some analysts and investors had feared, CEO Doug McMillon said in Thursday’s earnings call. Customers are flocking to Walmart – regardless of how much money they make.

“We are also seeing increased engagement across all income groups, with higher-income households continuing to account for the majority of the gains, even as we grow sales and market share among middle- and low-income households,” McMillon said.

Walmart also reported increases in the health and wellness category and Sam’s Club memberships across all income brackets. This continues a pattern Walmart noted earlier in the year: higher-income consumers were driving sales growth.

The company has benefited recently from a general increase in consumer spending. With inflation modestly easing and a weakening job market, consumers are less willing to spend on unnecessary goods and large household goods purchases. However, they are spending heavily on inexpensive goods and groceries.

It’s these types of products that have driven Walmart’s growth, most notably its private label Bettergoods, which launched earlier this year. With its colorful packaging and variety of plant-based and premium products, the brand has appealed to higher-income households looking for affordable, healthier and higher-quality products. In fact, higher-income consumers are more likely to consider shopping at Walmart than other retailers like Whole Foods and Trader Joes, according to May data from market research firm YouGov.

Affluent shoppers are also more likely to shop online and have their groceries delivered. This trend aligns with Walmart’s burgeoning e-commerce business, which grew 21% globally this quarter. During this period, the number of weekly active online customers increased 20% and in-store deliveries increased 50% as Walmart promised speedy deliveries within one to three hours.

That higher-income consumers are flocking to Walmart is good news for the retailer. But it’s also a reason for all retailers – even the surefire Walmart – to remain cautious about consumer spending. Although Walmart has weathered tough economic times – as well as volatility from geopolitical events like the U.S. election – Chief Financial Officer John David Rainey told analysts the company is “not immune” to economic stress, and neither are consumers.

“When money is tight, people react – even upscale consumers,” said former US CEO of Walmart, Bill Simon, in a CNBC Fast Money Interview in May.

Other discount retailers have also noticed the trend among wealthier shoppers. Dollar General CEO Todd Vasos told analysts in June that its higher-income customers continue to focus on discount brands, a sign not only of cautious consumption but also that shoppers are testing where they can save and spend.

“We see that in the next cohort and those above that – so we call them the middle to upper middle class and then some of the upper income brackets – the tradedown is still happening,” Vasos said.

Although affluent customers have helped Walmart soar while the general public remains largely cautious, the retailer may struggle to retain this key demographic long-term, Simon said. Walmart has improved the shopping experience through store renovations, attractive private-label product lines and convenient shopping, but it is not the premium shopping experience that wealthier consumers will seek when economic worries subside, he argued.

“As economic challenges ease, service will become more important than convenience and price,” he said. “And we will see some consumers move away.”