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UPDATE 1-New merchandise, revamped stores drive Dollar General forecast, shares up 8%

shares up 8%@ (Adds forecast, shares, background, compares with estimates)

Aug 29 (Reuters) - Dollar General Corp raised its full-year forecasts for sales and profit on Thursday as the discount store chain benefits from a wider selection of merchandise and store renovations, sending it shares up 8% before the bell.

The outlook as well as a quarterly profit beat eased some concerns around the impact of the Trump administration's latest tariffs on some Chinese imports, including holiday merchandise.

The company has been expanding its selection of products, including groceries and fresh food, to boost traffic and sales in stores as it battles with rival chain Dollar Tree and several other grocers.

"We made solid progress on each of our key initiatives and believe we are well positioned to drive continued growth as we move ahead," said Todd Vasos, the company's chief executive officer.

The company said it expects fiscal 2019 same-store sales to grow low-to-mid 3% range, compared with its prior estimate of about 2.5% growth.

It projected earnings of $6.36 per share to $6.51 per share, compared with its previous range of $6.30 to $6.50.

Same-store sales rose 4% in the second quarter ended Aug. 2, well above analysts' average estimate of a 2.43% increase, according to IBES data from Refinitiv.

Excluding certain items, the company earned $1.74 per share, well above the estimate of $1.57.

Net income rose to $426.6 million, or $1.65 per share, from $407.2 million, or $1.52 per share, a year earlier. (Reporting by Nivedita Balu in Bengaluru Editing by Saumyadeb Chakrabarty)