Dollar General has broken its quarterly sales record, earning $10.44 billion in revenue and upgrading its annual profit outlook as consumers seek cheaper alternatives amid economic uncertainty. The retailer’s shares jumped over 15% following the announcement, outpacing expectations from Wall Street.
The US economy saw a 0.2% annual decline from January to March, attributed to President Trump’s trade wars. Consumer spending slowed sharply, with sales at traditional retailers like Macy’s and Best Buy being cut back due to anxious customers and tariffs.
In contrast, Dollar General has raised its expectations for the year, predicting earnings of $5.20 to $5.80 per share, despite acknowledging uncertainty about tariffs’ impact on its business. Sales are forecasted to rise 3.7% to 4.7%, with same-store sales growth expected to be between 1.5% and 2.5%.
The retailer’s success is attributed to consumers seeking affordable alternatives, particularly lower-income Americans who are more vulnerable to financial pressure. Analysts expect Dollar General’s share price to continue its upward trend as the company benefits from shifting consumer behavior.
Source: https://apnews.com/article/dollar-general-tree-economy-tariff-trump-950f85ff117dd7cb46feffb4af94b546