(Reuters) -Dollar Tree ( DLTR ) raised its annual sales and profit forecasts on Wednesday as more Americans across income categories shop for cheaper groceries, apparel and home decor items at its stores.

Shares of Dollar Tree ( DLTR ), which sold its less-profitable Family Dollar banner for $1 billion earlier this year, rose about 1% in premarket trading. They have nearly doubled in value so far this year.

Dollar Tree's ( DLTR ) lower price points - about 85% of items at its stores are priced under $2 - and smaller pack sizes helped the company attract value-seeking middle- and higher-income consumers, apart from its core lower-income consumer.

Peer Dollar General also raised its annual targets last week, betting on demand from consumers across the board as tariff-related uncertainty and sticky inflation squeeze household budgets.

Dollar Tree ( DLTR ) now expects 2025 net sales in the range of $19.3 billion to $19.5 billion, compared with its prior forecast of between $18.5 billion and $19.1 billion.

It expects adjusted annual earnings per share between $5.32 and $5.72, compared with its earlier target of $5.15 to $5.65 per share.