GOODLETTSVILLE, Tenn. — Dollar General Corp. reported better-than-expected financial results for its fiscal first quarter, signaling early momentum for 2025 and prompting the discount retailer to raise its full-year guidance even as it flagged ongoing tariff uncertainty.
For the quarter ended May 2, the company posted a 5.3% increase in net sales to $10.4 billion, with same-store sales rising 2.4%, driven by a higher average transaction size. Operating profit rose 5.5% to $576.1 million, while net income climbed 7.9% to $391.9 million. Diluted earnings per share also increased 7.9% year over year to $1.78.
“We are pleased with our start to the year, including strong same-store sales and EPS results,” said CEO Todd Vasos in a statement. “Our efforts to improve execution and enhance the associate and customer experience are yielding positive outcomes.”
The company cited market share gains in both consumables and non-consumables, with growth from its core low-income shoppers as well as so-called “trade-in” customers—those seeking value amid economic pressure. Categories showing same-store sales growth included consumables, seasonal goods, home products, and apparel.
Gross margin improved 78 basis points to 31.0%, largely due to lower shrink and higher inventory markups, though partially offset by increased markdowns. SG&A expenses rose to 25.4% of sales from 24.7% a year ago, reflecting higher retail labor costs, incentive pay, and maintenance expenses.
Cash flow from operations surged 27.6% to $847.2 million. The company ended the quarter with inventories down 7% on an average per-store basis.
Dollar General opened 156 new stores and remodeled 1,227 locations through its Project Renovate and Project Elevate initiatives. Capital expenditures for the quarter reached $291 million, with investments spanning store upgrades, new locations, distribution, and technology.
The board declared a quarterly cash dividend of $0.59 per share, payable July 22 to shareholders of record as of July 8.
Looking ahead, Dollar General raised its full-year net sales growth outlook to a range of 3.7% to 4.7%, up from 3.4% to 4.4%, and now expects same-store sales to grow 1.5% to 2.5%. Full-year EPS is forecast between $5.20 and $5.80, compared to a previous range of $5.10 to $5.80.
Still, the company warned of volatility ahead tied to shifting U.S. trade policy. “Uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior,” the company stated, noting it has mitigation plans in place should previously announced tariffs on Chinese goods take effect.
Despite the headwinds, Dollar General reaffirmed its plan to open 575 stores in the U.S. and up to 15 in Mexico this year, as part of roughly 4,885 total real estate projects.
“We are proud of our progress and are excited about the future of this business,” Vasos said. “We are uniquely well-positioned to serve our customer in a variety of economic environments.”
