Dollar General posts record sales as bargain stores attract more people anxious about the economy

By MICHELLE CHAPMAN Associated Press Business Writer Dollar General set a quarterly sales record of billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores and off-price retailers amid economic uncertainty The U S economic activity shrank at a annual pace from January through March the first drop in three years as President Donald Trump s transaction wars dented spending by businesses Consumer spending slowed sharply For the period ended May Dollar General s sales climbed to billion from billion That s better than the billion that Wall Street was expecting according to a poll by Zacks Financing Research Related Articles US upsurge likely to slow to this year hobbled by Trump s agreement wars OECD says In current times in History June the Zoot Suit Riots begin in Los Angeles Romanian man pleads guilty to swatting plot that targeted an ex-US president and lawmakers Stabbing attack at Oregon homeless shelter sends people to hospital man in custody Newark airport runway project wraps up early so when will flight limits ease Sales at stores open at least a year a key indicator of a retailer s wellbeing increased Customer traffic dipped but the average transaction amount rose Shares jumped more than before the opening bell Tuesday and shares of rival Dollar Tree which reports its quarterly performance Wednesday rose Dollar General based in Goodlettsville Tennessee earned million or per share in the quarter blowing past the per share that Wall Street had expected as well as the million profit it recorded during the same period last year Dollar General disclosed that even though it topped its own expectations there is a lot of uncertainty about how tariffs will impact its business and its customers for the remainder of the year People are trading down or visiting bargain chains as they seek to extend their spending but lower-income Americans are much more vulnerable While the macro backdrop continues to be broadly unhelpful with core lower income consumers still facing considerable pressure on their finances this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs Neil Saunders managing director of GlobalData revealed in a report The company is now projecting earnings in a range of about to per share Its prior earnings forecast was for approximately to per share Analysts surveyed by FactSet are looking for earnings of per share Sales are expected to climb approximately to Dollar General previously predicted sales improvement of about to Same-store sales development is now expected to be approximately to up from a prior outlook for about to expansion