Dollar General Raises Outlook as Q1 Beats Estimates, Shares Soar 13%

Dollar General (NYSE:DG) shares surged more than 13% intra-day today after the company posted stronger-than-expected results for the first quarter and raised its full-year forecast, signaling confidence in its ability to weather potential fallout from ongoing U.S. tariffs.

Net sales for the quarter rose 5.3% year-over-year to $10.44 billion, beating analysts’ expectations of $10.28 billion. The company also delivered solid earnings, prompting it to revise its fiscal 2025 guidance higher.

Despite broader concerns that tariffs could dampen consumer spending and fuel inflation, Dollar General believes it can offset much of the potential impact—assuming rates stay unchanged through mid-August. The company acknowledged that higher prices could pressure shoppers but noted strategies are in place to minimize the fallout.

The updated outlook now calls for fiscal 2025 net sales growth of 3.7% to 4.7%, up from the earlier range of 3.4% to 4.4%. Same-store sales are projected to rise by 1.5% to 2.5%, slightly improved from the previous 1.2% to 2.2% forecast. Diluted EPS is expected to fall between $5.20 and $5.80, a modest lift from the earlier lower bound of $5.10.