Dollar General says it closed almost 100 stores in the fourth quarter but its sales actually went up—and Wall Street is loving it

Store closures can often be the sign of a retailer in a period of struggle. Take Kohl’s, for example, which closed about two dozen stores earlier this year and posted a disappointing earnings report this week .

Dollar General is bucking that trend. The Fortune 500 discount retailer said Thursday during its earnings report it closed 96 locations in the fourth quarter that ended in late January, but its net sales actually increased 4.5% to $10.3 billion. For the entire fiscal 2024 year, net sales jumped 5.0% to $40.6 billion. Shares were up more than 3.5% as of mid-day Thursday.

Dollar General saw stronger traffic growth during the second half of the fourth quarter in fiscal 2024, according to data from Placer.ai provided to Fortune. Consumers may have been more cost-conscious after the holidays and seeking out discount retailers, Elizabeth Lafontaine, director of research at location intelligence and foot-traffic software company Placer.ai, told Fortune.

“There’s been a consumer appetite for lower-priced and value-focused offerings over the past year, which could only grow against the backdrop of waning consumer sentiment and potential changes to shopper behavior,” Lafontaine said.

Placer.ai’s data also shows Dollar General outperformed other discount and dollar retailers in terms of foot traffic, although many companies in this category are faring well in light of customers searching for deals amid inflation and economic uncertainty.

Nicole DeHoratius , a professional practice professor at Columbia Business School , said in this era of inflationary prices, families are looking for ways to make the most of their budget, and shopping at stores like Dollar General allows them to do that.

“The pressure on family budgets—given the current economic uncertainty —is likely to continue and as such retailers that are able to offer value to their consumers should come out ahead,” DeHoratius told Fortune .

In late February, the University of Michigan’s Index of Consumer Sentiment came in with its weakest reading since November 2023. Concerns about inflation and President Donald Trump’s imposed tariffs have taken a toll on consumer confidence, and also sent stocks tanking the past couple of weeks.

Dollar General CEO Todd Vasos, however, appeared confident the discount retailer can weather any impact tariffs may bring.

“We believe we are well-positioned to mitigate the impact [of tariffs] in 2025,” Vasos said during the Thursday earnings call. “We were able to successfully mitigate the tariff impact in 2018 and 2019.”

However, Vasos conceded the company “did take retail price increases in some instances, along with others across the industry” in 2018 and 2019.

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