Dollar General narrows FY25 EPS view to $5.20-$5.80 from $5.10-$5.80

FY25 consensus $5.61. Raises FY25 net sales growth view to approximately 3.7% to 4.7%, compared to its previous expectation of approximately 3.4% to 4.4%, consensus $42.21B. Sees FY25 same-store sales growth of approximately 1.5% to 2.5%, compared to its previous expectation of approximately 1.2% to 2.2%. While the company’s first quarter 2025 financial results exceeded its internal expectations, uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior. The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported by the company and its suppliers into the U.S. continue to evolve. The company is updating its expectations for the year, primarily to reflect its outperformance in the first quarter and the tariff uncertainty discussed above. This updated guidance assumes the company will be able to mitigate a significant portion of the potential impact to its cost of goods from tariffs at currently implemented rates, but that consumer spending could be pressured by tariff-related price increases. The updated guidance assumes current tariff rates remain in place through mid-August 2025, and the company has plans in place to address the potential reversion to the tariff rates previously announced on goods from China on April 2, 2025.