By Savyata Mishra and Siddharth Cavale

Aug 21 (Reuters) - Walmart ( WMT ) 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.

The company's results show it has continued to benefit from

growing price sensitivity among Americans, with revenue of

$177.4 billion in the second quarter. Analysts on average were

expecting $176.16 billion, according to data compiled by LSEG.

Consumer sentiment has weakened due to fears of higher

inflation, hitting the bottom lines of some retail chains, but

Walmart's ( WMT ) sales have remained resilient.

The retailer expects annual sales to grow in the range of

3.75% to 4.75%, compared to its prior forecast of a 3% to 4%

increase. Adjusted earnings per share is expected in the range

of $2.52 to $2.62, compared to its previous range of $2.50 to

$2.60.

The Bentonville, Arkansas-based chain got a boost from a

sharper online strategy as more customers relied on home

deliveries. Its global e-commerce sales jumped 25% during the

quarter, and it touted that one-third of deliveries from stores

took three hours or less.

Walmart's ( WMT ) total U.S. comparable sales rose 4.6%, fueled by

solid demand in grocery, health and wellness, and online sales,

beating analysts' estimates of a 3.8% increase, according to

data compiled by LSEG.

Average spending at the till rose 3.1% from 0.6% last year.

It logged 40% growth in marketplace sales, including

electronics, automotive, toys, and media and gaming.

The retailer had warned it would increase prices this summer

to offset tariff-related costs on certain goods imported to the

U.S., a move that drew criticism from President Donald Trump.

Several other apparel, footwear, and packaged goods retailers

have issued similar warnings in response to import tariffs.

A day earlier, Target ( TGT ) warned of tariff-induced cost

pressures, even as it reiterated that price increases would be

considered only as a last resort.

Two-thirds of Walmart's ( WMT ) U.S. sales were from

domestically-sourced products, executives had said last quarter,

which gave it some insulation from tariffs compared to

competitors.

Walmart's ( WMT ) projection of third-quarter sales at $168 billion

was below Wall Street estimates for sales of $176.33 billion.