May 30 (Reuters) - Dollar General beat Wall Street estimates for first-quarter sales on Thursday, as more Americans flocked to its stores for pocket-friendly groceries and essentials at a time when elevated inflation continues to pressure household budgets.
Shares of the Goodlettsville, Tennessee-based company were up 6.3% before the bell. The stock has gained more than 2% this year, after dropping nearly 45% in 2023.
Dollar General has been focusing on selling relevant merchandise, having more employees at stores and expanding private-label brands, as it looks to attract consumers in the face of rising competition from rivals Walmart and Target and Chinese e-commerce platform Temu.
"These results were driven by strong customer traffic growth and market share gains during the quarter," said CEO Todd Vasos in a statement.
Visits to Dollar General were up 12.6% year-over-year in the first quarter, while rival Dollar Tree saw a 12.4% rise, according to data analytics firm Placer.ai.
The discount retailer's same-store sales rose 2.4% for the quarter, compared with analysts' average estimate of a 1.61% increase, according to LSEG data.
