From CNBC: 2025-06-03 10:57:00

Dollar General shares surged over 10% after raising outlook due to increased middle- and higher-income shoppers and concerns about tariffs impacting consumer spending. Quarterly earnings beat expectations with net sales anticipated to grow 3.7% to 4.7% and diluted earnings per share expected to range from $5.20 to $5.80.

The retailer reported earnings per share of $1.78 vs. $1.48 expected and revenue of $10.44 billion vs. $10.31 expected for the fiscal first quarter. Dollar General’s net income in the quarter was $391.93 million, compared to $363.32 million in the same period last year.

Dollar General stands out in retail amid tariff challenges, with companies like Best Buy, Macy’s, and Abercrombie & Fitch cutting profit outlooks. CEO Todd Vasos mentioned efforts to mitigate tariffs, reduce costs, and limit price hikes for consumers through vendor partnerships and product changes.

Despite tariffs, Dollar General expects to offset a significant portion of the impact on gross margin. Customer traffic dipped slightly in the first quarter, but shoppers spent more per transaction across various product categories. The company has seen growth in both middle- and higher-income customers visiting stores.

Dollar General’s core customers remain financially constrained, with a focus on value and discounts. The retailer’s sales mainly come from households earning less than $30,000 annually. Efforts to improve customer experience include reducing employee turnover and enhancing merchandise variety outside of food items.

Dollar General has introduced a home delivery service at more than 3,000 stores and seen a boost in sales through DoorDash. Its newer store chain, Popshelf, targeting higher-income shoppers, has shown strong growth with changes in store layout emphasizing toys, beauty, and party candy.



Read more at CNBC: Dollar General (DG) Q1 2025 earnings