Walmart reported better than expected and raised its annual forecast.

The largest American chain of retail stores, Walmart, on Tuesday, reported for the first quarter, exceeding forecasts for profit, sales dynamics in particular online sales. The company raised its annual earnings forecast.

Stocks are up 3% premarket.

Operating income rose 32.3% to $ 6.91 billion. Adjusted earnings were $ 1.69 per share, beating the analyst consensus of $ 1.21.

Total revenue rose 2.8% to $ 138.31 billion, while analysts had expected the figure to be around $ 132 billion.

“Our optimism is higher than at the beginning of the year. In the US, buyers want to go out and shop … We expect pending demand to continue throughout 2021,” said CEO Doug McMillon.

Like-for-like sales in the US rose 6%, although the Wall Street consensus is in the 1-2% region. The company cites growing market share for food, the positive impact of government checks issued to Americans, and deferred demand.

Online sales were up 37% from an analyst average of 24%. The slowdown in online sales growth emerged from social exclusion and base growth, but Walmart outpaced analysts’ estimates.

Management raised its full-year earnings forecast, now expecting a higher single-digit growth rate than it had previously expected.