Dollar General has reported fourth-quarter revenue that narrowly beat Wall Street estimates, with a 4.5% increase from last year’s same quarter. However, the company’s store portfolio review significantly impacted operating profit and earnings.
As part of the review, Dollar General plans to close 96 stores and convert six Popshelf stores into flagship locations in the first quarter. This decision aims to better position the business to serve customers and communities.
CEO Todd Vasos warned consumers that they “only have enough money for basic essentials” and expressed caution about the macro environment in 2025. Despite this, the company expects same-store sales to grow between 1.2% and 2.2% in 2025.
The review resulted in $232 million in charges from store closures and Popshelf impairment charges, which impacted operating profit by 81 cents per share. Net income decreased to $191 million, or 87 cents per share, compared to the same quarter last year’s $402 million, or $1.83 per share.
Shares of Dollar General rose nearly 7% on Thursday following the earnings release. The company forecasts revenue growth between 3.4% and 4.4% for fiscal 2025, slightly under Wall Street’s expectations of 4.1%. Dollar General also announced plans to test same-day delivery for customers in the first quarter.
Source: https://www.cnbc.com/2025/03/13/dollar-general-dg-q4-2024-earnings.html