Dollar General saw its shares climb 15% on Tuesday after the company raised its full-year guidance and posted stronger-than-expected earnings for the first quarter. The Tennessee-based discount chain reported earnings per share of $1.78 versus $1.48 predicted by analysts. Total revenue hit $10.44 billion beating expectations of $10.31 billion. The company now expects annual sales to grow between 3.7% and 4.7% which is higher than its previous estimate.

Dollar General also projects earnings per share to land between $5.20 and $5.80 for the year. Same-store sales are now forecast to grow 1.5% to 2.5% ahead of its earlier range of 1.2% to 2.2%. The company reported net income of $391.93 million in the latest quarter compared to $363.32 million a year earlier.

Tariffs Fail To Dull Growth As Shoppers Seek Value

CEO Todd Vasos said the company responded to tariff pressures by cutting supplier costs moving manufacturing out of China and adjusting its product mix. He added that more middle- and higher-income shoppers are turning to Dollar General to stretch their budgets. While customer traffic dipped slightly average spending per visit increased by 2.7%.

Vasos said the company is attracting a wider range of customers including those shopping for seasonal and home items. 

“While the tariff landscape remains dynamic and uncertain, we expect tariffs to result in some price increases as a last resort, though, we intend to work to minimize them as much as possible,” said Vasos.

Its Popshelf chain which targets higher-income shoppers also showed strong growth this quarter. Dollar General also expanded home delivery with DoorDash and its own service now available at over 3,000 stores.