Dollar General ups forecast despite economic uncertainty

Shares of Dollar General rose nearly 16% on Tuesday after the discount retailer increased its full-year outlook despite the trade tariffs and economic uncertainty.

The company now expects sales growth of 3.7%–4.7% and same-store sales gains of 1.5%–2.5%, with earnings projected at $5.20–$5.80 per share.

Outlook boosted by strong Q1 results
First-quarter net income reached $391.9 million, and revenue climbed to $10.44 billion, driven by larger average transaction sizes, even as same-store foot traffic declined.

Dollar General CEO Todd Vasos told investors that the chain is attracting more lower- and middle-income shoppers looking for deals. This reflects a broader trend: dollar and discount stores typically perform well during economic downturns as consumers seek lower-cost alternatives.

The company’s performance stands out in the retail industry, where giants like Walmart, Target, Best Buy, and Macy’s have either raised prices or cut their profit outlooks due to tariffs.

However, CEO Vasos is hopeful the chain can diversify production away from China, push manufacturers to absorb tariff-related costs, and find low-cost substitute products. He also added that Dollar General may raise prices as a last resort.

Not just retail
Consumer brands, including Campbell’s US division, said on Monday that more people are cooking at home than dining out, following an uptick in sales of its canned soups and sauces.