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Dollar General has reported a noteworthy increase of 2.4% in same-store sales for the quarter ending May 2, surpassing its own financial expectations. The surge in sales is attributed to higher-income consumers seeking value and flocking to the discount retailer's aisles.

The company saw growth across all its product categories, including consumables, seasonal items, home products, and apparel. CEO Todd Vasos highlighted this trend during the company's quarterly earnings call on June 3, noting a significant rise in the percentage of higher-income customers—reaching levels not seen in four years.

While the core customer base remains financially constrained, there has been a marked increase in trade-in activity from both middle- and higher-income shoppers, Vasos noted. Compared to the new customers Dollar General attracted last year, this year's newcomers are visiting more frequently and spending more, particularly on discretionary items. "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 stated.

To maintain its "everyday low prices" amid ongoing tariffs, Dollar General has been diversifying its product sourcing away from China, negotiating cost concessions from vendors, and finding alternative products. "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 added.

Looking forward, Dollar General has raised its guidance for the fiscal year ending January 30, 2026. The retailer now anticipates same-store sales growth between 1.5% and 2.5%, upping its previous forecast of 1.2% to 2.2%. Expectations for net sales growth and diluted earnings per share (EPS) have also been adjusted upwards.

"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," stated Kelly Dilts, Executive Vice President and Chief Financial Officer. She further noted that the strong Q1 performance positions the company well to achieve its 2025 guidance range.