GM(GM) New York Post·2025-06-03 14:33Core Insights - Dollar General shares increased by 13.6% following an upward revision of its sales forecast and strong earnings, driven by consumer demand for deals amid tariff concerns [1][5] - The company raised its annual same-store sales growth forecast to between 1.5% and 2.5%, up from 1.2% to 2.2%, and increased the low end of its earnings per share target by $0.10 to $5.20, maintaining the top end at $5.80 [1][4] Financial Performance - Dollar General reported a 2.4% increase in same-store sales for the first quarter of 2025, surpassing estimates of 1.41%, with higher average transaction sizes compensating for lower store traffic [3] - Earnings per share reached $1.78, exceeding projections of $1.48, while net sales rose 5.3% to $10.4 billion, compared to $9.9 billion in the same period last year, outperforming analyst expectations of $10.29 billion [4] Strategic Initiatives - The company attributed its strong performance to cost-cutting measures, including the closure of underperforming stores and remodeling existing locations, and plans to open 575 new stores in fiscal year 2025 [6][9] - Despite the positive outlook, Dollar General acknowledged ongoing economic uncertainty due to tariffs, which could impact consumer behavior and spending [7][10] Market Positioning - Dollar General is well-positioned to serve customers in various economic conditions, particularly as dollar stores typically perform better during economic downturns when consumers seek cheaper essentials [2][11]