Dollar General’s shares surged nearly 16% after it raised its sales and earnings outlook, driven by increased spending from middle- and higher-income shoppers amid tariff fears.

The retailer beat expectations for revenue and earnings in the first quarter, with net sales now expected to grow 3.7% to 4.7%.

CEO Todd Vasos said the company reduced its reliance on China to minimize tariff impacts and has seen more customers across income levels seeking value.

Despite slight drops in foot traffic, average transaction size rose, CNBC has reported.

Dollar General also expanded its merchandise and delivery services, while its Popshelf stores targeting higher-income shoppers showed strong growth.

Written by B.C. Begley