Honeybadger don't care... Neither does Dollar General or Dollar Tree. The 1-buck beasts both announced earnings Thursday, and their stocks jumped over 3% each. The reason: Both said they don't expect new tariffs on China to affect their profits this year. That's a big deal (those $1 thong sandals aren't made in the USA) and a nice surprise to shareholders.
Dollar stores = profit machines... America's cheapest chains are shockingly huge. Here's what they look like:
- Dollar General has 15K stores (all in the US) and is expanding with almost 1K more this year.
- Dollar Tree's got 15K, too.
- For context: Dollar Menu legend McDonald's has 14K restaurants in the US.
A sad economic story is good business... Inequality in wealth and income is growing in America — and companies on the high and low end both win. Case in point: LVMH's stock (the bougie French luxury fashion icon) is close to a record high. So are Dollar General and Dollar Tree's shares.
This quote from Dollar General's CEO in 2017 (sadly) nails it: “The economy is continuing to create more of our core customer.”