Dollar General set a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores and off-price retailers amid economic uncertainty.

The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Donald Trump’s trade wars dented spending by businesses. Consumer spending slowed sharply.

Dollar General, based in Goodlettsville, Tennessee, stands out because it is raising its expectations for the year while most traditional retailers, such as Macy’s, Target and Best Buy, are dialing back profit and sales projections, citing anxious customers or the impact of tariffs.

For the period ended May 2, Dollar General’s sales climbed 5% to $10.44 billion from $9.91 billion. That’s better than the $10.29 billion that Wall Street was expecting, according to a poll by Zacks Investment Research.

Sales at stores open at least a year, a key indicator of a retailer’s health, increased 2.4%. Customer traffic dipped 0.3%, but the average transaction amount rose 2.7%.

Dollar General earned $391.9 million, or $1.78 per share, in the quarter, blowing past the $1.47 per share that Wall Street had expected, as well as the $363.3 million profit it recorded during the same period last year.

Dollar General said that even though it topped its own expectations, there is a lot of uncertainty about how tariffs will affect its business and its customers in the remainder of the year.

People are trading down, or visiting bargain chains, as they seek to extend their spending, but lower-income Americans are much more vulnerable.

“While the macro backdrop continues to be broadly unhelpful, with core lower income consumers still facing considerable pressure on their finances, this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs,” Neil Saunders, managing director of GlobalData, said in a statement.