Discount store operator Dollar Tree raised its annual profit forecast on Wednesday, as lower freight costs and resilient demand for affordable essentials at its stores helped shield its margins.

The discount retailer raised its outlook after assessing the impact of tariffs on its business and consumer behavior, and posted better-than-expected first-quarter results.

Dollar General Corp. slightly increased its annual guidance after the first quarter topped projections. The discount chain also said it expects to mitigate a significant amount of the tariffs currently in place.