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STORY: As worries about inflation simmer, Americans are shopping more at Walmart.

The world’s largest retailer by sales raised its annual sales and profit forecasts on Thursday for a second time this year.

Americans flocked to its stores for inexpensive essentials, sending its shares up 8% to a record high.

Walmart's U.S. comparable sales, which combine online and sales at stores open for at least a year, rose 4.2%, handily beating the 3.3% rise analysts had expected, according to LSEG.

Walmart said those sales were boosted by strong demand for fresh food, particularly produce and high-quality meats.

The company's results suggest that despite several years of above-average inflation, consumer spending remains resilient.

U.S. inflation has also shown signs of moderating.

Walmart is one of the first big U.S. chains to report quarterly results that provide insight into consumer health.

The latest numbers come after the government reported an unexpected deterioration in the labor market, stoking fears of a recession.

Target, whose shares were up 4% following Walmart's results, will post its quarterly report next Wednesday.