Walmart First quarter profit and revenue exceeded Wall Street expectations on Tuesday as the company continues to see demand for its online grocery, pickup and delivery services.

The world’s largest retailer said its online sales in the United States in the first quarter rose 37%, while same-store sales rose 6%. The rise in e-commerce was led by Walmart’s online grocery business, where pickup and delivery services saw high sales volumes.

Meanwhile, Walmart said same-store growth was aided by stimulus spending, despite the lapping of COVID’s panic-buying and stimulus phase of last year.

As for the numbers, Walmart reported net income of $ 2.7 billion, or 97 cents per share. Non-GAAP earnings were $ 1.69 per share on revenue of $ 138.31 billion. Wall Street was looking for a profit of $ 1.21 per share on sales of $ 131.9 billion. Walmart shares rose more than 3% at the start of the session.

Throughout the pandemic, Walmart has leveraged its scale and supply chain to scale up its e-commerce operations and rapidly expand its food business. Walmart’s online grocery and e-commerce strategy relies heavily on the chain’s huge physical footprint, as well as recent revenue-generating additions, such as the launch of Walmart + and the benefits of fuel for customers. .

Notably, Walmart has still not disclosed how many followers it has for Walmart +.

Walmart CEO Doug McMillon said the company is more bullish now than it was at the start of the year, as consumer trends suggest “pent-up demand” and a desire to get out and do shopping.

As such, the company raised its outlook for the year, saying it now expects Walmart’s US earnings per share and operating profit to rise to single digits. The same-store sales guidelines for Walmart and Sam’s Club in the United States remain unchanged.

“It’s been a solid quarter,” McMillon said in prepared remarks. “Each segment has performed well, and we are encouraged by the traffic and market share trends in grocery stores. We have a strong position as our store environment improves and e-commerce continues to grow. The stimulus in the United States has had an impact, and the second half is more uncertain. than a typical year. “