09:05 AM EDT, 06/03/2025 (MT Newswires) -- Dollar General ( DG ) lifted its full-year revenue and same-store sales growth outlook on Tuesday as it recorded better-than-expected fiscal first-quarter results, while the discount retailer said tariffs could pressure consumer spending.

The company now anticipates sales to rise by about 3.7% to 4.7% for fiscal 2025, up from its previous projections of roughly 3.4% to 4.4%. Same-store sales are pegged to increase around 1.5% to 2.5%, compared with the prior guidance for a gain of 1.2% to 2.2%. The current consensus on FactSet is for same-store sales growth of 1.9% for the fiscal year.

Per-share earnings are now expected to be in a range of $5.20 to $5.80, reflecting a higher bottom end than the previous forecast of $5.10. The Street is looking for EPS of $5.61. Shares of the retailer jumped 10% in premarket activity.

"Looking ahead, we are uniquely well-positioned to serve our customer in a variety of economic environments," Chief Executive Todd Vasos said in a statement.

The revised outlook reflects the company's strong results in the first quarter and assumes that current tariff rates remain in place through the middle of August, Dollar General ( DG ) said. The retailer anticipates it will be able to mitigate a significant portion of the impact of tariffs on its cost of goods sold at current rates, but said tariff-driven price increases could weigh on consumer spending.

"Uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior," the company said. "The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported by the company and its suppliers into the US continue to evolve."

Global trade tensions were recently renewed after China's Ministry of Commerce accused the US of violating a preliminary deal reached between the two countries last month. President Donald Trump last week claimed that China violated the pact, under which Washington and Beijing agreed to suspend most tariffs on each other's imports for 90 days.

Dollar General ( DG ) said it has plans in place to "address the potential reversion to the tariff rates previously announced on goods from China on April 2."

For the three-month period ended May 2, the retailer posted net income of $1.78 a share versus $1.65 the year before, topping the average analyst estimate on FactSet for $1.48. Sales rose 5.3% year over year to $10.44 billion, surpassing the Street's view for $10.29 billion.

Same-store sales inclined 2.4%, above the 1.5% increase modeled by the market, buoyed by a 2.7% gain in average transactions, partially offset by a 0.3% decrease in customer traffic. Same-store sales grew in the consumables, seasonal, home products and apparel categories, according to the company.

"We are pleased with our start to the year, including strong same-store sales and EPS results," according to Vasos. "Our efforts to improve execution and enhance the associate and customer experience are yielding positive outcomes in both our operational performance and our financial results."