Dec 4 (Reuters) – Dollar General raised its annual profit forecast on Thursday, banking on resilient demand at its discount stores, as well as its efforts to cut costs and reduce inventory-related damages.
Shares of the company, which also raised its annual comparable sales forecast, were up about 5% premarket.
Middle- and lower-income customers in the U.S. have doubled down on their hunt for cheaper alternatives and better seasonal deals on everything from groceries to apparel against the backdrop of economic uncertainty and recent worries over a sluggish labor market.
The company projected annual earnings per share in the range of $6.30 to $6.50, compared with its earlier target of $5.80 to $6.30.
It now expects annual same-store sales to grow in the range of 2.5% to 2.7%, compared with its prior forecast of a 2.1% to 2.6% growth.
(Reporting by Anuja Bharat Mistry and Sanskriti Shekhar in Bengaluru; Editing by Sriraj Kalluvila)
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