Dollar General (DG) reported stronger-than-expected fourth-quarter sales, but missed profit estimates due to costs from a store portfolio review. The retailer posted earnings per share (EPS) of $0.87 on revenue of $10.30 billion, beating analysts’ estimates of $1.52 EPS and $10.26 billion in revenue.
The company plans to close 96 stores, including 45 pOpshelf locations, and convert six more to Dollar General stores in the first quarter. CEO Todd Vasos said this decision will better position the company to serve customers and communities.
Same-store sales rose 1.2% year-over-year, exceeding analysts’ projection of 0.93%. However, earnings per share missed expectations due to a negative impact from the store review.
For fiscal 2025, Dollar General expects EPS to range from $5.10 to $5.80, with net sales growth of 3.4-4.4% and same-store sales increasing by 1.2-2.2%. This compares to analysts’ expectations of full-year EPS of $5.94, revenue growth of 3.96%, and same-store sales growth of 1.77%.
Oppenheimer analysts downgraded their outlook for Dollar General’s 2025 projections, citing ongoing challenges that have masked the company’s turnaround efforts. Despite this, shares rose 3% after markets opened, while discount retail rival Dollar Tree (DLTR) shares also gained 6%.
Source: https://www.investopedia.com/dollar-general-earnings-q4-fy2024-11695661