Core Insights - Dollar General reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.47 per share, and showing an increase from $1.65 per share a year ago, resulting in an earnings surprise of 21.09% [1] - The company generated revenues of $10.44 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.45% and up from $9.91 billion year-over-year [2] - Dollar General shares have increased approximately 28.2% year-to-date, significantly outperforming the S&P 500's gain of 0.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.56 on revenues of $10.62 billion, while for the current fiscal year, the estimate is $5.58 on revenues of $42.16 billion [7] - The estimate revisions trend for Dollar General is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Retail - Discount Stores industry, to which Dollar General belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Dollar Tree, a competitor in the same industry, is expected to report a decline in earnings and revenues, with quarterly earnings estimated at $1.19 per share, reflecting a year-over-year decrease of 16.8% [9][10]

Core Viewpoint - Dollar General reported better-than-expected Q1 results and slightly raised its full-year earnings guidance, indicating effective measures to address current tariff impacts [1][2] Financial Performance - The company raised its same-store sales growth forecast for the fiscal year from 1.2%-2.2% to 1.5%-2.5% [1] - Full-year earnings per share guidance was increased by $0.10 to a lower limit of $5.20, while the upper limit remains at $5.80 [1] - For the quarter ending May 2, the company achieved revenue of $10.4 billion, exceeding analyst expectations, with earnings per share of $1.78 compared to the expected $1.48 [1] - Same-store sales grew by 2.4%, significantly surpassing the analyst forecast of 1.41% [1] Market Position and Strategy - CEO Todd Vasos expressed satisfaction with the company's performance and highlighted the continuous increase in market share as a key driver of positive results [1] - The company plans to open nearly 600 new stores this year, indicating a strategy to expand its footprint despite economic challenges [2] - Historically, discount retailers like Dollar General tend to perform well during economic downturns as consumers shift towards lower-cost options to save money [2] Challenges and Risks - The company faces challenges from inflation, particularly affecting its core low-income customer base, which is reducing purchases of essential goods [2] - As a major sales channel for Chinese imports, Dollar General is directly impacted by tariff policies, with management warning that price increases related to tariffs may suppress consumer demand [2]

Group 1 - Dollar General is expected to report fiscal first-quarter earnings on June 3, 2025, with forecasts of $1.49 per share and revenue of $10.29 billion, indicating a 10% decline in earnings year-over-year and a 4% increase in sales compared to last year's figures [1] - The company has a market capitalization of $21 billion, with revenue over the past twelve months at $41 billion, operating profits of $1.7 billion, and a net income of $1.1 billion [2] - Dollar General's fourth-quarter earnings per share fell 53% year-over-year, contributing to a 32% overall drop for the year 2024, largely due to surplus inventory [2] Group 2 - The company sources approximately 96% of its inventory domestically, limiting exposure to tariff-related cost increases [2] - For the current fiscal year ending in January, Dollar General anticipates net sales growth between 3.4% and 4.4%, while same-store sales are expected to rise by only 1.2% to 2.2% [2] - Historical data shows that Dollar General stock has decreased 74% of the time following earnings announcements, with a median one-day drop of 4.2% [1][4] Group 3 - Over the past five years, Dollar General has recorded 19 earnings data points, with positive one-day returns observed only 26% of the time, dropping to 18% in the last three years [4] - The median of the five positive returns was 4.4%, while the median of the 14 negative returns was -4.2% [4] - The performance of peers can influence Dollar General's post-earnings stock reaction, with historical data indicating that pricing may begin before earnings announcements [5]

Financial Performance - Net sales for the 13 weeks ended May 2, 2025, increased to $10,435,979, up 5.3% from $9,914,021 in the same period last year[22] - Gross profit for the same period rose to $3,231,288, representing a gross margin of 30.9%, compared to 30.2% in the prior year[22] - Net income for the quarter was $391,928, an increase of 7.9% from $363,317 in the previous year[22] - Earnings per share (EPS) for the quarter was $1.78, up from $1.65 year-over-year[22] - Consolidated net income for the 13 weeks ended May 2, 2025, was $391,928 thousand, compared to $363,317 thousand for the same period in 2024, representing an increase of 7.9%[72] - Cash flows from operating activities rose to $847.2 million in 2025, an increase of $183.3 million compared to 2024[121] Assets and Liabilities - Total current assets decreased to $7,896,303 from $8,163,925 at the end of January 2025, primarily due to a reduction in cash and cash equivalents[20] - Total liabilities decreased to $23,283,998 from $23,719,026, reflecting a reduction in current liabilities[20] - Cash and cash equivalents at the end of the period were $850,018, down from $932,576 at the beginning of the period[30] - As of May 2, 2025, the Company's total current and long-term obligations were $5.744 billion, down from $6.238 billion as of January 31, 2025[52] Tax and Legal Matters - Total reserves for uncertain tax benefits, interest expense related to income taxes, and potential income tax penalties amounted to $14.5 million as of May 2, 2025[46] - The effective income tax rate for the 13-week period ended May 2, 2025, was 23.4%, slightly higher than the 23.3% rate for the same period in 2024[48] - The Company expects to reduce its reserve for uncertain tax positions by $3.5 million in the coming twelve months[47] - The effective income tax rate for 2025 was 23.4%, slightly higher than 23.3% in 2024, primarily due to stock-based compensation[113] - The Company believes that pending legal matters will be resolved without a material adverse effect on its consolidated financial statements[68] Operational Highlights - The company reported a LIFO provision of $12.3 million for the quarter, compared to $10.3 million in the same period last year[36] - Operating lease costs for the 13-week periods ended May 2, 2025, and May 3, 2024, were $487.9 million and $459.8 million, respectively, reflecting an increase of 6.5%[51] - The weighted-average remaining lease term for the Company's operating leases was 9.3 years, with a weighted average discount rate of 4.6% as of May 2, 2025[51] - The company opened 156 new stores and remodeled 668 stores in the first quarter of 2025, with plans to open approximately 575 new stores in 2025[92] - The Company operates 20,582 stores across 48 U.S. states and Mexico as of May 2, 2025, maintaining its position as the largest discount retailer in the U.S. by store count[82] Sales and Inventory - Consumables sales reached $8,636,680 thousand, up from $8,210,850 thousand, reflecting a growth of 5.2% year-over-year[70] - The percentage of net sales from consumables remained high at 82.76%, reflecting the company's focus on this category[111] - Inventory turnover improved to 4.2 in 2025 from 3.8 in 2024, indicating better inventory management[106] - Total merchandise inventories decreased by 2% in 2025, with apparel and home products both seeing an 8% decline[122] - Inventory represented approximately 46% of total assets as of May 2, 2025, indicating a focus on inventory management[117] Expenses and Dividends - Selling, general and administrative expenses increased by 8.5% to $2.66 billion, impacting overall profitability[109] - Cash dividends paid were $129.8 million in 2025, slightly up from $129.7 million in 2024[126] - Dividends paid during the quarter remained stable at $0.59 per share, consistent with the previous year[22] - A cash dividend of $0.59 per share was paid during the first quarter of 2025, with a similar dividend declared for June 2025[76] Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[32] - The company plans to enhance its digital shopping experience and expand same-day home delivery offerings through partnerships with third-party delivery services[90] - The company has approximately $1.38 billion available under its common stock repurchase program, which has no expiration date[74] - The company has a remaining stock repurchase authorization of approximately $1.38 billion but plans no repurchases in 2025[127] - The Company is focused on mitigating the impact of tariffs on consumer behavior and financial results, with no material impact observed in the first quarter of 2025[84]

Financial Performance - Net sales increased by 5.3% to $10.4 billion in Q1 2025 compared to $9.9 billion in Q1 2024[4] - Operating profit increased by 5.5% to $576.1 million, up from $546.1 million in Q1 2024[7] - Diluted earnings per share (EPS) rose by 7.9% to $1.78, compared to $1.65 in Q1 2024[9] - Net income for the quarter was $391,928,000, representing a 7.9% increase from $363,317,000 in the prior year[31] - Earnings per share for the quarter were $1.78, up from $1.65 in the same quarter last year[31] Sales and Revenue Growth - Same-store sales rose by 2.4%, driven by a 2.7% increase in average transaction amount, despite a 0.3% decrease in customer traffic[4] - The company expects net sales growth of approximately 3.7% to 4.7% for fiscal year 2025, an increase from the previous expectation of 3.4% to 4.4%[16] - For the quarter ended May 2, 2025, net sales increased by 5.3% to $10,435,979,000 compared to $9,914,021,000 for the same period in 2024[31] Profitability Metrics - Gross profit as a percentage of net sales improved to 31.0%, up from 30.2% in Q1 2024, an increase of 78 basis points[6] - Gross profit margin improved to 30.96% from 30.18% year-over-year, with gross profit amounting to $3,231,288,000[31] Cash Flow and Liquidity - Cash flows from operations increased by 27.6% to $847.2 million[5] - Cash and cash equivalents at the end of the period were $850,018,000, down from $932,576,000 at the beginning of the period[33] Inventory and Assets - Total merchandise inventories decreased by 7.0% to $6.6 billion as of May 2, 2025, compared to $6.9 billion as of May 3, 2024[10] - The company reported a decrease in merchandise inventories to $6,590,096,000 from $6,934,389,000 year-over-year[29] - Total assets decreased slightly to $30,987,661,000 from $31,132,733,000 at the end of January 2025[29] Expenses and Liabilities - Selling, general and administrative expenses increased to $2,655,175,000, accounting for 25.44% of net sales[31] - The company’s total liabilities were $23,283,998,000, a decrease from $24,009,320,000 in the previous year[29] Future Plans - The updated guidance for diluted EPS is approximately $5.20 to $5.80, compared to the previous expectation of $5.10 to $5.80[16] - The company plans to execute approximately 4,885 real estate projects in fiscal year 2025, including opening about 575 new stores in the U.S.[18] - The company opened 156 new stores during the quarter, resulting in a total store count of 20,582, a net decrease of 12 stores[37]

Financial Results - Dollar General Corporation is set to release its first-quarter financial results on June 3, with expected earnings of $1.49 per share, a decrease from $1.65 per share in the same period last year [1] - The company anticipates quarterly revenue of $10.29 billion, up from $9.91 billion a year earlier [1] - Dollar General has exceeded analyst revenue estimates for two consecutive quarters and five out of the last six quarters [1] Stock Performance - Dollar General shares experienced a slight decline of 0.1%, closing at $97.17 on Monday [2] Analyst Ratings - UBS analyst Michael Lasser maintained a Buy rating and raised the price target from $95 to $120 [9] - Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating and increased the price target from $85 to $100 [9] - B of A Securities analyst Robert Ohmes maintained a Buy rating and raised the price target from $100 to $115 [9] - Goldman Sachs analyst Kate McShane maintained a Buy rating and increased the price target from $85 to $96 [9] - Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight rating and raised the price target from $80 to $85 [9]

Core Viewpoint - Dollar General and Dollar Tree are experiencing a rebound in stock prices due to turnaround strategies aimed at improving operational efficiency, with upcoming quarterly results anticipated by investors [1]. Group 1: Turnaround Strategies - Dollar General is implementing a "Back to Basics" strategy focusing on inventory management, store remodels, and reducing shrinkage to enhance operational efficiency and customer satisfaction [2]. - Dollar Tree plans to sell its struggling Family Dollar business to Brigade Capital for $1 billion, which is significantly lower than the original $8 billion purchase price, aiming to alleviate declining profitability and overhead costs [3]. Group 2: Performance Overview - Dollar General stock is currently trading 30% below its 52-week high of $141, while Dollar Tree shares are 25% below their one-year high of $121. Both stocks have rebounded over 20% year to date, with a surge of more than 30% in the last three months [4]. Group 3: Q1 Expectations - Dollar General's Q1 sales are projected to increase by 4% year over year to $10.29 billion, with an expected EPS decline to $1.47 from $1.65 a year ago. However, there is potential for Dollar General to surpass earnings expectations with a more accurate estimate of $1.51 [5]. - Dollar Tree's Q1 sales are expected to drop to $4.54 billion from $7.63 billion in the prior year, with earnings anticipated to decrease by 17% to $1.19 per share. The most accurate estimate suggests a potential EPS of $1.25, which is 5% above the Zacks Consensus [7][8]. Group 4: Valuation Comparison - Both Dollar General and Dollar Tree are trading at 17X forward earnings, which is a discount compared to the S&P 500 and the Zacks Retail-Discount Stores Industry average of 22X. They also trade under the optimal level of less than 2X sales [9]. Group 5: Investment Outlook - Both companies hold a Zacks Rank 3 (Hold) ahead of their Q1 reports, with future upside dependent on demonstrating a turnaround in operational efficiency and meeting or exceeding Q1 expectations [11][12].

Core Viewpoint - Dollar General Corporation is set to release its first-quarter fiscal 2025 earnings results on June 3, which could indicate the effectiveness of its turnaround strategy and influence investor decisions on buying, holding, or selling the stock [1]. Financial Performance - Revenue is expected to increase to $10.29 billion, reflecting a 3.8% year-over-year improvement, while earnings per share (EPS) is projected to decline by 10.9% to $1.47 [2][7]. - The company has a trailing four-quarter negative earnings surprise of 1.2% on average, but it beat the Zacks Consensus Estimate by 12% in the last reported quarter [3]. Earnings Predictions - The Earnings ESP for Dollar General is +2.64%, and it holds a Zacks Rank of 3 (Hold), suggesting a likelihood of an earnings beat [4][5]. - The consensus estimates for future quarters show stability, with EPS projected at $1.56 for the next quarter and $5.58 for the current year [3]. Strategic Initiatives - Dollar General's focus on expanding market share in consumables and non-consumables, along with proactive pricing strategies and private-label offerings, is expected to support revenue growth [6][7]. - Initiatives like DG Fresh, SKU rationalization, and digitization are anticipated to improve same-store sales, projected to increase by 0.8% for the quarter [7][8]. Market Position and Stock Performance - Dollar General shares have increased by 35.3% over the past three months, outperforming the industry average of 0.2% and key competitors [11]. - The stock is currently trading at a forward P/E ratio of 16.84, which is a discount compared to the industry average of 33.73 and the S&P 500's P/E of 21.71 [12]. Valuation Comparison - Dollar General's P/E ratio is higher than Target's (12.03) and Dollar Tree's (16.71) but lower than Costco's (53.65), indicating a mixed valuation landscape [13]. Investment Outlook - While Dollar General shows signs of operational discipline and potential for gradual recovery, near-term margin pressures and earnings challenges suggest that current investors may hold the stock, while potential investors might wait for clearer signs of margin stabilization [16].

Group 1 - The company is a French public limited company with a share capital of €1,460,429,245.00 [1] - As of May 31, 2025, the total number of shares is 584,171,698 [1] - The theoretical number of voting rights is 584,171,698, including treasury stock [1] - The number of voting rights, excluding treasury stock, is 561,517,947 [1] Group 2 - The information is disclosed on the company's website [2]

Core Viewpoint - VINCI SA has conducted share buybacks from May 26 to May 30, 2025, under the authorization granted by its General Meeting on April 17, 2025, in compliance with share buyback regulations [2]. Group 1: Share Buyback Transactions - Total shares purchased during the period amounted to 357,877 shares at an average price of €128.5617 [2]. - Daily transactions included: - May 26: 50,000 shares across multiple markets with average prices ranging from €129.3843 to €129.4141 [2]. - May 27: 70,000 shares with average prices between €129.0752 and €129.1468 [2]. - May 28: 80,000 shares with average prices from €128.1224 to €128.1477 [2]. - May 29: 80,000 shares with average prices from €128.5802 to €128.6137 [2]. - May 30: 77,878 shares with average prices from €127.8821 to €127.9645 [2]. Group 2: Regulatory Compliance - The transactions are reported in accordance with Article 5 (1) (b) of Regulation (EU) No 596/2014 concerning market abuse [3]. - Detailed information regarding these transactions is available on the VINCI website [3].