Core Insights - Dollar General Corp reported better-than-expected fourth-quarter earnings, with an EPS of $0.87, which included a significant charge of $0.81 related to store portfolio review and closures. Excluding these charges, the EPS would have exceeded consensus expectations of $1.51 [1][2] Financial Performance - The company achieved a 1.2% comparable store sales growth, surpassing the consensus of 0.9%, leading to a 4.5% year-over-year revenue increase to $10.30 billion, exceeding the expected $10.26 billion [2] - Gross margin was reported at 29.4%, slightly above expectations, while SG&A expenses increased due to the portfolio review. Overall inventories decreased by 4%, with a 6.5% reduction on a per-store basis [2] Future Guidance - For 2025, Dollar General guided an EPS range of $5.10 to $5.80, which is slightly below the consensus of $5.83. The company anticipates flat EPS growth in 2025 due to increased real estate projects, store closures, and sales challenges in the first quarter [3][6] - Positive factors include increased sales from upper-income consumers and plans to expand the same-day delivery partnership with DoorDash to 10,000 stores [3] Analyst Ratings and Market Position - Piper Sandler analyst Peter Keith maintained a Neutral rating and raised the price target from $79 to $81, while Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating with a price target of $85.00 [1][5] - Analysts noted that Dollar General is transitioning from a growth retailer to a more mature one, focusing on slower unit growth and enhancing in-store operations [5][6] Challenges and Concerns - Analysts expressed concerns regarding sluggish comparable store growth, unclear EPS growth trajectory, and potential tariff impacts on lower-income customers [4] - Profitability may face challenges from promotions, a shift towards consumables, and rising costs, including wages, incentive compensation, and utility expenses [7]