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3 takeaways from Dollar General, Dollar Tree earnings that sent stocks soaring

PUBLISHED THU, MAY 26 2022 | 1:40 PM EDT | UPDATED THU, MAY 26 2022 | 6:10 PM EDT

Melissa Repko
@MELISSA_REPKO

KEY POINTS
• Dollar Tree and Dollar General boosted their outlook for the year, as shoppers squeezed by inflation seek cheaper prices.
• The companies are seeing people buying a different mix of merchandise than they were a year ago, when they had stimulus dollars in their pockets.
• The dollar chains are also expanding while trying to strategize about ways to manage higher costs.

Shares of Dollar General and Dollar Tree popped Thursday, as the discounters beat Wall Street’s quarterly earnings expectations, raised outlooks for the coming year and spoke of consumers flocking to lower prices during inflationary times.

Dollar General shares rose 13.71% to close at $222.13 on Thursday. Dollar Tree shares jumped 21.87% to close at $162.80.

The two retailers said they see opportunity to grow as Americans weigh value more heavily in their purchasing decisions, whether buying groceries or seasonal decor.

“We’re already starting to see our core customers start to shop more intentionally,” Dollar General CEO Todd Vasos said on a call with analysts. “And we’re starting to see that next tier of customers start to shop with us a little bit more as well.”

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