May 16 (Reuters) - U.S. retail giant Walmart ( WMT )

raised its full-year forecast and reported better-than-expected

first-quarter results on Thursday, betting on easing inflation

to further boost demand for essentials and bring a rebound in

sales of discretionary products like apparel and electronics.

Shares of the Bentonville, Arkansas-based company were up

6%in premarket trading. If these gains hold, the stock will hit

a record on Thursday.

The strong performance by the nation's largest retailer

could assuage some investors' fears about ebbing U.S. consumer

spending. Americans have largely been able to weather higher

prices but a long bout of inflation has raised concerns that

shoppers could become more constrained and a recovery in

spending will be slower than previously expected.

While U.S. consumer prices rose less than expected in April,

domestic demand has shown signs of cooling as Americans struggle

with higher mortgage rates and car insurance premiums.

On Thursday, Walmart ( WMT ) reported total U.S. comparable sales up

3.9%, excluding fuel, for its first quarter ended April 30.

Average transactions rose by a similar amount and unit sales

also rose, Walmart ( WMT ) said in a statement. Analysts on average were

expecting U.S. comparable sales growth of 3.15%, according to

LSEG.

First-quarter adjusted earnings per share came in at 60

cents easily beating the 52-cent average forecast. Total

revenue of $161.51 billion also topped estimates.

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.