Shares of Dollar General (DG) surged over 10% in premarket trading on Tuesday after the discount retailer topped Wall Street expectations for the first quarter. The company also raised its full-year guidance across the board, reflecting stronger confidence in its performance outlook despite ongoing tariff headwinds.
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The retailer lifted the lower end of its earnings guidance by $0.10, now expecting full-year EPS between $5.20 and $5.80. It also upgraded its net sales growth forecast to 3.7%–4.7%, up from the previous 3.4%–4.4% range. In addition, Dollar General now anticipates same-store sales growth of 1.5% to 2.5%, compared to its earlier projection of 1.2% to 2.2%.
Dollar General Delivers Strong Q1 Beat
In the first quarter, the company posted earnings per share (EPS) of $1.78 on revenue of $10.44 billion, reflecting a 5% year-over-year increase in sales. Both figures beat analyst estimates, which had called for $1.47 EPS and $10.26 billion in revenue, according to Visible Alpha. Meanwhile, same-store sales climbed 2.4%, nearly doubling the 1.22% growth analysts had anticipated.
Dollar General Says It’s Ready for Tariffs
Dollar General acknowledged that uncertainty remains for the rest of the year regarding how potential tariff hikes might affect its operations—especially in terms of consumer behavior.
Nonetheless, it noted that it has contingency plans ready if tariffs on China and other nations revert to April 2 levels. While the company believes it can offset the majority of the increased costs, it cautioned that tariff-driven price hikes could weigh on consumer spending.
Is Dollar General a Buy or Sell?
According to TipRanks, Wall Street has a Moderate Buy consensus rating on DG stock, based on nine Buys, 10 Holds, and two Sells assigned in the last three months. The average Dollar General stock price target of $97.20 is similar to current levels.
