Walmart said easing price pressures in the US and a strong labour market were supporting American shoppers, but warned that rising fuel prices and high borrowing costs would mean household budgets remain under pressure.

The world’s largest retailer said it continued to observe budget-conscious shoppers seeking relief from persistent inflation across the broader economy, but was confident its “value proposition” was still resonating with customers — including high-income ones — and propelling sales.

Chief executive Doug McMillon said Walmart had a “strong” quarter, which beat forecasts and resulted in the company raising its sales and profit guidance for the second time this year, but expressed some caution on the broader challenges facing American consumers.