CNBCยท2025-06-03 14:09Core Viewpoint - Dollar General's shares surged over 15% after the company raised its outlook, indicating resilience amid concerns over higher tariffs affecting consumer spending [1] Financial Performance - Dollar General exceeded quarterly expectations with net income of $391.93 million, or $1.78 per share, compared to $363.32 million, or $1.65 per share in the same quarter last year [3] - The company anticipates net sales growth of approximately 3.7% to 4.7%, an increase from the previous expectation of 3.4% to 4.4% [2] - Diluted earnings per share are expected to range from $5.20 to $5.80, up from the prior outlook of approximately $5.10 to $5.80 [2] - Same-store sales are projected to increase by 1.5% to 2.5%, higher than the previous guidance of 1.2% to 2.2% [2] Market Context - Dollar General's strong performance contrasts with other retailers like Best Buy and Macy's, which have lowered profit outlooks due to tariffs [4] - The company has managed to attract more middle- and higher-income shoppers seeking value, as indicated by increased store traffic and spending [6] Strategic Adjustments - The CEO stated that Dollar General has reduced its exposure to China and limited price hikes by working with vendors to cut costs and shifting manufacturing to other countries [5] - Direct imports account for a mid- to high single-digit percentage of overall purchases, while indirect imports are about double that [5] - The company aims to minimize price increases resulting from tariffs, which have also heightened consumer demand for discounts [6]