US retail giant Walmart reported an increase in sales on Thursday due to increased e-commerce and advertising sales and raised its outlook for the full year.

Given Walmart’s enormous size and presence throughout the United States, the company’s earnings are closely watched for clues about the overall health of U.S. consumers.

The company’s strong U.S. sales in the second quarter of this year suggest that consumers, still grappling with post-pandemic price increases for many household items, prefer to shop at Walmart rather than at more expensive grocery stores.

“So far, we are not seeing any weaker consumer sentiment overall,” Walmart CEO Doug McMillon said during a conference call before the stock market opened.

“Customers of all income levels are looking for value and that is what we offer,” he added.

Walmart’s sales rose 4.8 percent to $169.3 billion in the second quarter compared to the same period last year, it said in a statement.

Profits fell 43 percent, largely due to an unusual rise in the share price of several Walmart-backed companies over the same period last year. Operating profit rose 8.5 percent — a sign that the core business is doing well.

The results beat analysts’ expectations and prompted the company to raise its outlook for the year. Shares rose nearly seven percent in premarket trading.

“We see no signs that the customer base is declining,” Walmart said in a statement on Wednesday.

“Customers remain picky and demanding,” it said, adding that every part of its business has grown.

Walmart said its global e-commerce sales increased 21 percent in the second quarter, “led by store pickup and delivery and the marketplace.”

At the same time, the company’s global advertising business grew 30 percent, driven by a 30 percent increase in Walmart Connect business in the United States.

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