Dollar General raised its annual profit forecast after beating third-quarter earnings estimates on Thursday, as value-seeking shoppers across income levels flock to its stores amid economic uncertainty and the discount retailer reins in costs. The company’s shares rose as much as 12.3% to a 15-month high, set to add to their 45% gain this year. “With our unique combination of value and convenience, we believe we are well-positioned to increase market share with customers across all income brackets,” said CEO Todd Vasos during the post-earnings call.
Dollar General and rival Dollar Tree, which raised its annual profit forecast a day earlier, are benefiting from robust demand for everything from groceries to home goods across income groups, a trend highlighted by retail giant Walmart. “The discounters and dollar stores have performed well this year … Everyone is seeking value in this environment,” said Joseph Feldman, analyst with Telsey Advisory Group.
