Dollar Tree reported record sales for the second quarter in 2025. That’s good for the company. It may not be a good sign for the economy as a whole, though.

In fact, Jim Cramer, a former hedge fund manager turned TV personality, has recently shared a blunt warning about Dollar Tree shoppers. 

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It’s a warning that is worth paying attention to, whether you visit Dollar Tree or not, as it could be a strong sign that you need to start preparing your finances for an economic downturn.

Here’s what Cramer had to say about Dollar Tree shoppers, and what current shopping patterns mean for your financial future.

Americans need to listen to Jim Cramer’s warning. 

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Jim Cramer shares a blunt warning about Dollar Tree

Cramer shared his blunt warning about Dollar Tree in the context of a discussion about both consumer sentiment and retail spending in the United States.

Here’s what Cramer had to say:

“If you default to the companies that have reported in the last 24 hours, actually not a bad bunch to default to, what you find out is that what are the American people doing? Well, the American people are shopping at…Dollar Tree….And that is a sign that the American people do not feel very secure. And that’s something that Home Depot said, they don’t feel very secure. That is going to keep projects on the sidelines and keep people from spending the way that they would like.”

The key eight words of that quote should jump out at everyone: “The American people do not feel very secure.”

Why does everyone need to pay attention to Jim Cramer’s Dollar Tree warning?

Jim Cramer’s warning is an important one. 

When people shop at dollar stores, it’s generally a sign that they are worried about their budget. They may not have a lot of money to spare to buy luxury items, so they are shopping at discount stores to try to make their dollar stretch further.

Dollar Tree CEO Michael Creedon made a similar comment to Cramer’s in the company’s previous earnings call in late March. At the time, higher-income shoppers were increasingly turning to Dollar Tree, and the CEO commented on the phenomenon:

“It doesn’t matter how much money you make, everybody’s hurting right now.”

Dollar Tree’s latest earnings show this trend has continued

Dollar Tree’s most recent earnings for the second quarter of 2025 show that the trend has continued of more people turning to the discount retailer for their everyday essentials.

• Dollar Tree’s sales increased 12.3% to $4.6 billion.
• Dollar Tree’s same-store net sales were up 6.5%, driven by a 3.0% increase in traffic and a 3.4% increase in per-ticket sales.
• Dollar Tree increased its full-year fiscal 2025 net sales outlook to between $19.3 and $19.5 billion based on a 4% to 6% growth in comparable store net sales.
• Gross profit increased 12.9% to $1.6 billion, and gross margin expanded 20 basis points to 34.4%.

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The CEO also explained that the store was well-positioned in this tough economic climate. Here’s what Creedon said:

“The strong sales growth, margin outperformance, and market share gains that Dollar Tree delivered in the second quarter against an increasingly challenging economic backdrop reinforces the unique position that Dollar Tree occupies in today’s retail landscape.”

Jim Cramer is right about consumer sentiment

Cramer is absolutely right about what this shopping trends means for consumer sentiment. Pew Research from earlier this summer showed Americans are not feeling positive about their financial situation:

• 40% of Americans said they were in fair shape financially, and 17% said they were in poor shape.
• 20% of adults said they expected their financial situation to be worse in a year, including 34% of upper-income adults.
• Only 48% of Americans said they had an emergency fund.

These are worrying indicators, of course, as it’s not good news for over half of all Americans to be left unprepared or for so many Americans to be worried about their finances. 

Ultimately, it is a good idea for everyone to heed Cramer’s warning and try to take steps to shore up their financial security. This includes working on growing an emergency fund, as economic uncertainty continues to reign. 

Related: Dollar Tree’s new pricing strategy sparks customer fury