Walmart now sees net sales rising 3.75% to 4.75% from last year, compared to prior guidance for a range of 3% to 4%. Walmart also tweaked its earnings forecast, saying it now expects adjusted earnings per share to range from $2.52 to $2.62. The previous outlook was for $2.50 to $2.60.

Shares of Walmart Inc. dropped in early trading Thursday, after the discount-retail behemoth missed fiscal second-quarter profit expectations, but raised its full-year outlook and saw strength in sales at both its retail and Sam’s Club warehouse stores.

Walmart on Thursday raised its fiscal year sales and profit forecast, driven by strong demand from shoppers across all income levels, who have turned to the world's largest retailer as they worry about rising costs.