Overview

• Net sales climbed 5.3% year-over-year to $10.44 billion in Q1 2025, with same-store sales up 2.4% despite a 0.3% dip in customer traffic.
• CEO Todd Vasos said the chain saw its highest share of middle- and higher-income “trade-in” customers in four years as consumers hunt for bargains.
• Full-year guidance was lifted to 3.7%–4.7% net sales growth and diluted EPS of $5.20–$5.80, up from prior ranges of 3.4%–4.4% and $5.10–$5.80.
• Shares jumped over 15% on June 3 after the company unveiled plans to open 575 new stores and remodel about 4,000 locations this fiscal year.
• The company is diversifying sourcing to limit tariff-related cost hikes even as its core low-income shoppers report reduced incomes and expect to cut spending on necessities.