Dollar General is expecting its customers to face deteriorating financial conditions this year.“Our customers continue to report that their financial situation has worsened over the last year, as they have been negatively impacted by ongoing inflation,” Todd Vasos, CEO of the discount retailer, said during a fourth-quarter earnings call Thursday (March 13). “Many of our customers report that they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necess ...

Core Insights - Dollar General's CEO Todd Vasos indicated that inflation continues to negatively impact customers, and the macroeconomic environment is not expected to improve in 2025 [1][2] - Customers are increasingly seeking value and convenience from Dollar General, with many reporting that their financial situations have worsened over the past year [1][2] - The company is closely monitoring potential economic headwinds, including government entitlement program changes and the impact of tariffs [4] Financial Performance - Dollar General reported a same-store sales growth of 1.2% for the quarter, driven entirely by a 2.3% increase in average transaction value, while customer traffic decreased by 1.1% due to ongoing financial pressures [6] - The company announced plans to close 96 Dollar General stores and 45 Popshelf stores, while converting six Popshelf stores into flagship locations [5] Customer Insights - The core consumer of Dollar General is described as "always strained" economically but resourceful, adapting to ongoing inflation [2] - Customers are becoming more budget-conscious as they navigate the effects of persistent inflation [3]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - Dollar General reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.50 per share, but down from $1.83 per share a year ago, indicating a 8.2% year-over-year decline [1] Financial Performance - The company achieved revenues of $10.3 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.44% and showing an increase from $9.86 billion year-over-year, representing a 4.3% growth [2] - Over the last four quarters, Dollar General has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Dollar General shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has decreased by 4.8% [3] - The current Zacks Rank for Dollar General is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.64 on revenues of $10.29 billion, and for the current fiscal year, it is $5.90 on revenues of $42.19 billion [7] - The estimate revisions trend for Dollar General is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Retail - Discount Stores industry, to which Dollar General belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Comparatively, Dollar Tree, another competitor in the same industry, is expected to report a year-over-year earnings decline of 14.5% in its upcoming results [9]

Dollar General on Thursday reported fiscal fourth-quarter revenue that narrowly beat Wall Street estimates, while a store portfolio review cut into the chain's profit.As part of the reevaluation, the dollar-store chain said it will close 96 Dollar General stores and 45 Popshelf stores and will convert six other Popshelf stores into flagship banner locations in the first quarter. Popshelf stores cater to higher-income shoppers seeking inexpensive products.Shares of the company rose 5% in premarket trading on ...

I rate Dollar General (NYSE: DG ) a Buy due to its recession resistant business model and attractive valuation. While the stock has dropped 69%, and the board brought back the old CEO, I think DG will be successful inAnalyst’s Disclosure: I/we have a beneficial long position in the shares of DG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business ...

Core Viewpoint - Dollar General is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending January 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for March 13, 2025, with expectations of earnings per share (EPS) at $1.50, reflecting an 18% decrease year-over-year, while revenues are projected to be $10.26 billion, a 4.1% increase from the previous year [3][2]. - The consensus EPS estimate has been revised down by 3.2% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Dollar General is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.73%, which complicates the prediction of an earnings beat [10][11]. - The company holds a Zacks Rank of 3 (Hold), which further diminishes the likelihood of surpassing the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Dollar General was expected to post earnings of $0.96 per share but only achieved $0.89, resulting in a surprise of -7.29%. Over the past four quarters, the company has beaten consensus EPS estimates twice [12][13]. Industry Comparison - Dollar Tree, a competitor in the discount retail sector, is expected to report EPS of $2.18 for the same quarter, indicating a year-over-year decline of 14.5%, with revenues projected at $8.23 billion, down 4.7% from the previous year [17][18]. - Similar to Dollar General, Dollar Tree's consensus EPS estimate has been revised down by 0.1% in the last 30 days, leading to an Earnings ESP of -1.19% and a Zacks Rank of 3 [18].

Target (TGT) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $2.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.11%. A quarter ago, it was expected that this retailer would post earnings of $2.29 per share when it actually produced earnings of $1.85, delivering a surprise of -19.21%.Over the last four quarters, the company has surpa ...

Group 1: Stock Performance - Shares of Dollar General, PepsiCo, and The Hershey Company fell by 5.4%, 2.9%, and 4% respectively on Wednesday [1] Group 2: Legislative Impact - The declines in these consumer staples stocks are likely due to the House of Representatives passing a budget reconciliation bill, which may lead to cuts in Medicaid and SNAP [2][5] - The budget resolution passed by a narrow margin of 217-215, with a late push from President Trump influencing the vote [3] - The resolution preserves the Tax Cuts and Jobs Act of 2017 while proposing $2 trillion in spending cuts, with the Energy and Commerce committee directed to make the largest cuts totaling $880 billion [4][5] Group 3: Consumer Behavior - Cuts to Medicaid and SNAP could pressure lower-income families financially, potentially decreasing sales for Dollar General, which derives about 60% of its sales from families earning less than $30,000 annually [7] - Lower-income families may reduce purchases of branded foods from Pepsi and Hershey, opting for lower-cost private-label items instead [8] Group 4: Economic Outlook - Analysts believe that cuts to programs benefiting lower-income Americans are likely, despite the budget resolution not specifically naming these cuts [10] - Austerity measures could negatively impact economic growth, with recent consumer sentiment surveys indicating a slowdown [11][12]