Dollar General raised its full-year outlook Tuesday after posting stronger-than-expected earnings and revenue for the first quarter of 2025. The discount retailer said it is drawing more customers from middle- and upper-income households despite broader concerns about tariffs affecting consumer spending.
For the quarter ending May 2, Dollar General reported net income of $391.93 million, or $1.78 per share, up from $1.65 per share a year earlier. Revenue reached $10.44 billion, exceeding analyst expectations tracked by LSEG.
Dollar General now expects net sales to grow between 3.7% and 4.7%, up from its earlier guidance of 3.4% to 4.4%. It projects same-store sales will rise 1.5% to 2.5% and has raised the low end of its earnings forecast.
Shares climbed nearly 16% Tuesday and are up about 48% year to date, outperforming the broader S&P 500.
CEO Todd Vasos said on the company’s earnings call that Dollar General has worked to reduce exposure to Chinese imports through vendor negotiations, shifting manufacturing, and merchandise adjustments. “While the tariff landscape remains dynamic and uncertain, we expect tariffs to result in some price increases as a last resort, though we intend to work to minimize them as much as possible,” he said.
CFO Kelly Dilts added that the company has built flexibility into its outlook to absorb some impact from tariffs and any resulting changes in customer behavior.
Customer visits declined 0.3% for the quarter, but spending per trip increased by 2.7%. Vasos noted growing interest from shoppers across income levels: “Customers across multiple income bands [are] seeking value.” He emphasized that Dollar General continues to appeal to its core demographic, 60% of whom have household incomes below $30,000.
According to CNBC, the company’s focus on value and strategic sourcing adjustments have helped drive momentum in a shifting retail landscape.
