Dollar General Corp. reported a robust first quarter for fiscal year 2025, with net sales reaching $10.44 billion, surpassing Wall Street expectations. The company's adjusted earnings per share (EPS) stood at $1.78, exceeding estimates of $1.47. Dollar General also raised its financial guidance for the full year, forecasting a rise in comparable store sales between 1.5% to 2.5% and an EPS range of $5.20 to $5.80. The company's net income for the quarter was $391.9 million, and its stock surged by 15% in pre-market trading, reaching an 11% increase before the market opened. The strong performance was attributed to a 2.4% increase in same-store sales, a 5.3% rise in net sales, and a 7.9% increase in diluted EPS. Additionally, gross margins expanded by 78 basis points, driven by a 2.7% increase in basket size. Dollar General plans to open 600 new stores this year and has seen an increase in higher-income shoppers, benefiting from partnerships with DoorDash and Dolly Parton. In contrast, Dollar Tree Inc. reported mixed results for its first quarter, with net sales of $4.64 billion and an adjusted EPS of $1.26, both beating estimates. However, the company warned that its second-quarter profit could decline by as much as 45% to 50% year-over-year due to tariffs and the pending sale of its Family Dollar business. Dollar Tree's shares fell in early trading after the forecast. The company's same-store sales increased by 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in ticket size. During the quarter, Dollar Tree opened 148 new stores, including its 9,000th location. Five Below Inc. also released its first-quarter earnings, reporting net sales of $970.5 million, up 19.5% year-over-year, and an adjusted EPS of $0.86, surpassing expectations. The company raised its full-year sales guidance and the low end of its EPS guidance range, despite announcing a CFO transition. Comparable sales increased by 7.1%.
Dollar General could actually benefit from President Donald Trump’s tariffs. https://t.co/3GoU5UzGgS
Dollar Tree reported a strong first quarter with better-than-expected earnings and sales, but warned that tariffs could take a toll on its second-quarter earnings. https://t.co/FdVPd2Cry7 #retail #finance #tariffs #sales
Discount retailer Dollar Tree said the impact of tariffs will result in lower than expected profit for the second quarter, which ends Aug. 3. https://t.co/tDB4rzN3Hu