(Reuters) -U.S. retail giant Walmart ( WMT ) raised its fiscal 2025 sales and profit forecast on Thursday, betting on easing inflation to further boost demand for essentials and bring a rebound in sales of discretionary products like electronics.

Shares of the Bentonville, Arkansas-based company were up 6%in premarket trading.

The retail bellwether now expects annual consolidated net sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth.

It also expects adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 and $2.37, it said on Thursday.

Total U.S. comparable sales rose 3.9%, excluding fuel, in the first quarter ended April 30, helped by a similar rise in the number of average transactions. Volume sales also grew in the quarter, Walmart ( WMT ) said. Analysts on average were expecting U.S. comparable sales growth of 3.15%.

The stock's surge has boosted its valuation past 25 times expected earnings, up from a 10-year average valuation of about 20, suggesting strong growth in coming quarters, according to LSEG data.