Dollar General Sees Greater-Than-Expected Growth as Higher-Income Consumers Seek Value

Dollar General’s same-store sales increased 2.4% and its financial results exceeded internal expectations in the quarter ended May 2, as higher-income consumers came to its stores in search of value.

Same-store sales grew in each of the retailer’s product categories, including consumables, seasonal, home products and apparel, according to a Tuesday (June 3) earnings release.

In addition, the retailer saw the highest percentage of higher-income, value-seeking customers it has seen in four years, Dollar General CEO Todd Vasos said Tuesday during the company’s quarterly earnings call.

“While our core customer remains financially constrained, we have seen increased trade-in activity from both middle- and higher-income customers,” Vasos said.

Compared to the new customers Dollar General saw last year, this year’s new customers are making more trips to Dollar General, spending more money with the retailer, and spending more on discretionary categories, Vasos said.

“We believe these behaviors suggest that we are continuing to attract higher-income customers who are looking to maximize value while still shopping for items they want and need,” Vasos said.

To continue offering “everyday low prices” amid the current tariffs, Dollar General has been diversifying the countries from which it sources products, to reduce its exposure to China; negotiating cost concessions from vendors; and reengineering products or finding substitutes, Vasos said.

“While the tariff landscape remains dynamic and uncertain, we expect tariffs to result in some price increases as a last resort, though we intend to work to minimize them as much as possible,” Vasos said.

Looking ahead, Dollar General raised its guidance for the fiscal year ending Jan. 30, 2026, assuming the current tariff rates stay in place through mid-August.

The retailer raised its expectations for net sales growth, same-store sales growth and diluted earnings per share (EPS), according to the earnings release.

It now expects same-store sales growth of 1.5% to 2.5%, up from its previous expectation of 1.2% to 2.2%, per the release.

“We believe our positive first quarter results are a testament to the importance of our value and convenience proposition for our customers, particularly in a time of continued uncertainty and a financially constrained core consumer,” Dollar General Executive Vice President and Chief Financial Officer Kelly Dilts said during the call. “Furthermore, our Q1 performance has positioned us well as we look towards achieving our guidance range for 2025.”