Source: www.reuters.com

2 Min Read

(Reuters) -Dollar General Corp forecast full-year sales above analysts’ estimates on Thursday, as higher prices of everyday essentials make more Americans frugal and turn to discount stores for their groceries and household supplies.

U.S. discount stores have seen store traffic remain steady as people gradually resume their pre-pandemic life after an Omicron-led pause and go back to buying more discounted apparel, moisturizers, lipstick and accessories.

The pandemic-led trend of cooking at home has also sustained even as coronavirus-related curbs have eased due to people reining in their spending at restaurants, helping grocery sales at discount stores that benefited during the lockdowns.

The discount store operator forecast full-year net sales to increase about 10%, while analysts on average expect growth of 7.5%, according to IBES data from Refinitiv.

The company’s net income for the quarter ended Jan. 28 fell to $597.4 million, or $2.57 per share, from $642.74 million, or $2.62 per share, a year earlier.

Reporting by Ananya Mariam Rajesh and Praveen Paramasivam in Bengaluru; Editing by Maju Samuel