Dollar General Shifts Focus To Stability, But Analysts Flag Profitability Pressures
Piper Sandler analyst
DG reported fourth-quarter earnings per share of
The company posted a 1.2% comp growth, above the 0.9% consensus, driving revenues up 4.5% year-over-year to
Gross margin of 29.4% was slightly above expectations, though SG&A expenses rose due to the portfolio review. Inventories were down 4% overall, and 6.5% on a per-store basis.
For 2025, DG guided an EPS range of
Positive factors include increased sales from upper-income consumers and plan to expand the same-day delivery partnership with DoorDash to 10,000 stores.
Meanwhile, sluggish comp growth, unclear EPS growth trajectory, and potential tariff impacts on lower-income customers are concerns, concluded the analyst.
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According to the analyst,
This shift, led by CEO
The company is progressing with key initiatives like remodels, merchandising, and its Back to Basics strategy. While, challenges such as macro trends, higher labor costs, and operational inconsistencies persist.
Profitability will face challenges from promotions, a shift towards consumables, and higher costs, including wages, incentive compensation, and utility expenses, opined the analyst.
Price Action: DG shares traded lower by 0.86% at
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