New York
CNN
—
Most US retailers are struggling from President Donald Trump’s tariffs. Dollar General could actually benefit.
The company said Tuesday that sales at stores open for at least a year had increased 2.4% last quarter. The discount chain also raised its profit forecast for the year.
“We are uniquely well-positioned to serve our customer in a variety of economic environments,” Dollar General CEO Todd Vasos said in a news release.
The Trump administration’s trade policies have stoked uncertainty, raised fears of higher inflation and driven down consumer sentiment to some of the lowest levels on record. Discount stores such as Dollar General tend to gain during periods of economic strain as shoppers tighten their belts.
Dollar General said it had gained market share from competitors during the latest quarter, both among its core low-income shopping base, as well as middle-income consumers looking to save money.
The company’s results beat analysts’ expectations, sending shares of Dollar General (DG) up 11% during pre-market trading.
Dollar General’s primary customers earn under $40,000 a year, and the chain has more than 20,000 stores, primarily in rural areas.
Dollar General will still face pressure from tariffs, however. The company imports most of its products, and it may raise prices or stop offering some products to mitigate the impact. Dollar General also warned that “consumer spending could be pressured by tariff-related price increases.”
In March, the chain said low-income Americans’ financial condition had gotten worse over the last year and more shoppers were going without basic necessities.
