Sprouts Farmers Market shares surged 5.28% in after-hours trading on Wednesday, following the release of second-quarter results that topped analyst expectations and alleviated concerns about weakening consumer demand.

The specialty grocer reported diluted earnings per share of $1.37, surpassing the FactSet consensus estimate of $1.34. Revenue for the quarter rose 5% to $2.33 billion, edging past the $2.32 billion analyst forecast. The beat was driven by strong performance from new store openings and continued product innovation, despite a cautious consumer environment that had prompted some analysts to flag downside risks heading into the report.

While the company issued third-quarter earnings guidance of $1.20 to $1.24 per diluted share—below the $1.28 analyst estimate—the market appeared to focus on the quarterly beat and the company’s reaffirmed full-year outlook. The results suggested that Sprouts Farmers Market was navigating competitive pricing pressures and broader consumer softness better than feared, leading to the post-market rally.