Dollar General Raises Forecast, Attracts Higher-Income Shoppers Amid Tariff Impact

Dollar General raised its full-year sales and earnings forecast after reporting stronger-than-expected first-quarter results, driven by tariff uncertainty and economic pressures that have attracted budget- and middle-income consumers. The retailer saw a 5.3% increase in net sales to $10.44 billion and a 7.9% rise in net income to $391.9 million, with same-store sales up 2.4% and average transaction value increasing 2.7%. CEO Todd Vasos highlighted that middle- and higher-income shoppers are increasingly frequenting Dollar General, seeking value amid economic uncertainty, and credited the company’s 'back to basics' strategy for its performance. Analysts at Jefferies and Barclays raised their price targets to $126 and $119 respectively, maintaining bullish outlooks based on strong sales momentum, store growth, and improving operational metrics. Despite cautiousness about potential changes to tariff rates on Chinese imports, Dollar General has contingency plans and expects to offset much of the tariff impact on gross margins. The company also plans to add 575 new stores this year, reinforcing its expansion strategy in a tight economic environment.