Dollar General Corporation (NYSE:DG) is one of the stocks Jim Cramer shed light on. Cramer highlighted the company CEO’s older comments as he said:
“First, there are the dollar stores. We all accept the cliche of the cash-strapped consumer, right? A strapped consumer often goes to dollar stores. There’s a perception that these stores have a ton of Chinese exposure, so their sales and earnings have been hurt by the tariffs. Both Dollar General and Dollar Tree are extremely well-run companies. They’ve spent a great deal of their conference calls talking about how they’ve mitigated much of the Chinese exposure, but they can’t get rid of it… There’s still too much of it. And the tariffs don’t just apply to China either. As Dollar General CEO Todd Vasos pointed out in his June conference call, ‘We have successfully reduced our China exposure to less than 70% of our direct imports, and we estimate less than 40% of our indirect imports are sourced from China.’ Still, Vasos says he’s had to raise prices as a last resort.”
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Dollar General Corporation (NYSE:DG) sells a everyday essentials, including food, household items, personal care products, and apparel at affordable prices. In addition, it provides seasonal goods, pet supplies, and home products. Artisan Partners stated the following regarding Dollar General Corporation (NYSE:DG) in its second quarter 2025 investor letter:
“In the consumer staples sector, tobacco company Philip Morris International (PM) and discount retailer Dollar General Corporation (NYSE:DG) continued their strength from Q1. Both stocks are up over 50% year to date. In recent years, DG has dealt with execution issues, rising competition an increasingly constrained lower income consumer after a period of high inflation. However, the company is making progress on fixing operational issues, from store standards to supply-chain execution and labor efficiency. Additionally, with inflation stabilizing, there are early signs that customers have adjusted to higher price levels as basket sizes and units are beginning to rise again. Another dynamic is that DG’s business model is countercyclical. During tougher economic times, DG typically gets trade-down business from middle-income cohorts, and with the possibility that escalating tariffs could slow the economy, investors see DG as a potential beneficiary.”
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Disclosure: None. This article is originally published at Insider Monkey.
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