Bing Guan | Bloomberg | Getty Images Walmart said Tuesday that sales rose nearly 9 percent in the fiscal third quarter as Americans of all income levels bought the company’s low-priced groceries. The discounter beat Wall Street expectations for the quarter and raised its outlook to reflect that pace.

One of our best performing stocks of late is reporting gains this week. Here’s what to expect Here’s what Walmart reported for the three-month period ended Oct. 31, according to Refinitiv:

Earnings per share: $1.50 adjusted vs. $1.32 expected Revenue: $152.81 billion vs. $147.75 billion expected

Walmart posted a net loss of $1.8 billion, or 66 cents a share, down from a profit of $3.11 billion, or $1.11 a share, a year earlier. On an adjusted basis, the company reported earnings of $1.50 per share. The retailer recorded a charge of nearly $3.33 billion, or $1.05 per share, as part of an opioid settlement.

“Pockets are tight”

Shoppers are watching how they spend, said Walmart Chief Financial Officer John David Rainey. They buy less expensive proteins such as hot dogs, beans and peanut butter instead of more expensive meats. They wait for sales events to buy items like TVs and deep fryers and spend less on clothing and home categories. “Pockets are stretched,” he said. “People have less discretionary income or less disposable income to spend on things — and so they’re looking for value.” The discount also made progress with an industry-wide headache: a glut of excess inventory. Walmart’s stock rose 13% year over year in the third quarter. This is down from 25% in the second quarter and 32% in the first quarter. Rainey said Walmart canceled orders, raised markdowns and cleared a backlog of merchandise stuck at ports. He said about 70% of the increase in inventories was due to inflation rather than more units. “From a unit standpoint, we’re in a much, much better position than we were in the first part of the year,” he said. Comparable sales for Walmart US rose 8.2%, excluding fuel. The core retail metric includes sales from Walmart stores and clubs that have been open for at least one year, including remodels, relocations and expansions. Walmart is navigating a tougher backdrop as it prepares for the holidays. Inflation is nearing a four-decade high, driving up the prices of housing, gas and more. Competitors are discounting heavily to try to clear excess inventory. And consumers are spending again on travel, dining out and other experiences. As inflation heats up, however, the big retailer has been attracting higher-income shoppers. About 75% of market share gains in food came from households making more than $100,000 a year, Rainey said. The discounter saw the same pattern last quarter. So far, he said the holidays are “off to a pretty good start,” but “consumers are using discretion in what they buy.” This story is developing. Check back for updates.