Dollar General sales hit record $10.4B, outlook raised amid inflation

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A sign for a Dollar General store is seen on May 28, 2025 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)

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Dollar General hit a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans navigate their finances amid inflation.

Big picture view:

The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Donald Trump’s trade wars dented spending by businesses. Consumer spending slowed sharply.

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By the numbers:

Dollar General, based in Goodlettsville, Tennessee, stands out because it is raising its expectations for the year while most traditional retailers, like Macy's, Target or Best Buy, are dialing back profit and or sales projections, citing anxious customers or the impact of tariffs.

Inflation slowed more than expected in April

The Bureau of Labor Statistics says the annual inflation rate was the lowest since February 2021.

For the period ended May 2, Dollar General's sales climbed 5% to $10.44 billion from $9.91 billion. That's better than the $10.29 billion that Wall Street was expecting, according to a poll by Zacks Investment Research.

Sales at stores open at least a year, a key indicator of a retailer's health, increased 2.4%.

Customer traffic dipped 0.3%, but the average transaction amount rose 2.7%.

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Shares jumped 9% before the opening bell Tuesday and shares of rival Dollar Tree, which reports its quarterly performance Wednesday, rose 4%.

Dollar General earned $391.9 million, or $1.78 per share, in the quarter, blowing past the $1.47 per share that Wall Street had expected, as well as the $363.3 million profit it recorded during the same period last year.

Why you should care:

Dollar General said that even though it topped its own expectations, there is a lot of uncertainty about how tariffs will impact its business and its customers for the remainder of the year.

People are trading down, or visiting bargain chains, as they seek to extend their spending, but lower-income Americans are much more vulnerable.

What they're saying:

"While the macro backdrop continues to be broadly unhelpful, with core lower income consumers still facing considerable pressure on their finances, this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs," Neil Saunders, managing director of GlobalData, said in a statement.

President Trump announces double tariffs on steel

President Trump announced Friday that he is doubling tariffs on steel imports from 25 percent to 50 percent. The announcement came during a rally at a steel plant in West Mifflin, Pennsylvania.

What's next:

The company is now projecting 2025 earnings in a range of about $5.20 to $5.80 per share. Its prior earnings forecast was for approximately $5.10 to $5.80 per share.

Analysts surveyed by FactSet are looking for earnings of $5.61 per share.

Sales are expected to climb approximately 3.7% to 4.7%. Dollar General previously predicted sales growth of about 3.4% to 4.4%. Same-store sales growth is now expected to be approximately 1.5% to 2.5% up from a prior outlook for about 1.2% to 2.2% growth.