MW Dollar General's stock soars as tariff pressures didn't hurt profits or outlook

By James Rogers

Discount retailer Dollar General says that consumer spending could be pressured by tariff-related price increases

Dollar General Corp.'s stock surged more than 11% in premarket trading Tuesday, boosted by first-quarter results that beat Wall Street's top- and bottom-line expectations, and an improved full-year outlook.

The store's $(DG)$ first-quarter profit of $1.78 a share beat the FactSet consensus estimate of $1.49 a share. Revenue rose to $10.44 billion from $9.91 billion in the prior year's quarter, beating the analyst revenue estimate of $10.29 billion.

The company reported an increase in same-store sales, or sales of stores open at least 13 months, of 2.4%. Analysts surveyed by FactSet were looking for 1.5% growth.

Dollar General also raised its full-year guidance and now expects net sales growth of approximately 3.7% to 4.7%, above its prior outlook of approximately 3.4% to 4.4% growth.

The company expects full-year earnings of $5.20 to $5.80 a share, compared with its prior outlook of approximately $5.10 to $5.80 a share. Same-store sales growth guidance range was raised to approximately 1.5% to 2.5% from 1.2% to 2.2%.

In a statement, Dollar General said that, while its first-quarter results exceeded expectations, uncertainty exists for the remainder of the year regarding the potential impact of tariffs on its business, and particularly on consumer behavior.

"The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported by the Company and its suppliers into the U.S. continue to evolve," it said.

The updated guidance assumes that Dollar General will be able to mitigate "a significant portion of the potential impact to its cost of goods from tariffs at currently implemented rates," the company said, but added that consumer spending could be pressured by tariff-related price increases, the company said.

During the first quarter, Dollar General's cost of goods sold as a percentage of net sales was 69.04%, down slightly from $69.82% in the prior year's quarter.

Cost of goods sold, or COGS, refers to the direct costs incurred in order to sell a product or service, and is an important metric in a calculating company's profitability.

Shares of rival Dollar Tree Inc. $(DLTR)$, which reports first-quarter results Wednesday, are up 3.6% in premarket trades.

Dollar General shares are up 28.2% in 2025, compared with the S&P 500 index's SPX gain of 0.9%.

-James Rogers

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June 03, 2025 07:53 ET (11:53 GMT)

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