(Reuters) -Dollar General raised its annual sales and profit forecasts on Thursday, banking on steadfast demand from cost-conscious consumers across income brackets in the United States amid tariff and inflation concerns.
The company's shares rose about 6% in premarket trading and the stock is up nearly 47% so far this year.
Dollar stores have traditionally fared better during economic downturns as budget-conscious consumers turn to them for affordable essentials.
While lower-income consumers were struggling
to afford even necessities, the company's cheaper-priced product assortment was gathering higher-income customers to its stores, Dollar General said earlier this year.
Retail bellwether Walmart has also been gaining wealthier customers looking for low-priced groceries at its stores. The company raised its annual sales target earlier this month.
Dollar General said on Wednesday it was taking into consideration "the potential for uncertainty related to consumer behavior" in its annual targets.
For the quarter ended August 1, the company's same-stores sales rose 2.8%, beating an estimate of a 2.5% rise, helped by growth in customer visits as well as the amount spent per visit.
The company now expects 2025 net sales growth of 4.3% to 4.8%, compared with its prior forecast of between 3.7% and 4.7% growth.
Dollar General expects annual earnings per share of $5.80 to $6.30, compared with its earlier target of $5.20 to $5.80 per share.
Its second-quarter adjusted profit of $1.86 per share also handily beat an estimate of $1.57 per share.
(Reporting by Juveria Tabassum and Sanskriti Shekhar; Editing by Pooja Desai)
