Based in Goodlettsville, Tennessee, Dollar General Corporation (DG) is a discount retailer that provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. Valued at $25.97 billion by market cap, the company offers everyday essentials, including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor through its 20,149 Dollar General, DG Market, DGX, and pOpshelf stores across the U.S. and Mi Súper Dollar General stores in Mexico. The leading discount retailer is expected to announce its fiscal second-quarter earnings for 2025 on Thursday, Aug. 29.
Ahead of the event, analysts expect DG to report a profit of $1.81 per share on a diluted basis, down 15% from $2.13 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion.
For fiscal 2025, analysts expect DG to report EPS of $7.21, down 4.5% from $7.55 in fiscal 2024.
DG stock has significantly underperformed the S&P 500’s ($SPX) 14.5% gains on a YTD basis, with shares down 13.1% during this period. Similarly, it underperformed the S&P 500 Cons Staples Sector SPDR’s (XLP) 9% gains over the same time frame.
On Jul. 12, DG shares rose marginally after the retailer agreed to pay a $12 million fine and improve safety at its 20,000 retail stores nationwide to settle claims that it put workers in danger with practices including blocking emergency exits.
On May 30, DG reported its Q1 results. Its net sales rose 6.1% year over year to $9.91 billion, beating the consensus estimates of $9.88 billion. The company’s operating profit fell 26.3% year over year to $546 million, while its same-store sales increased 2.4%. For fiscal 2024, the company expects net sales growth of 6% to 6.7% and same-store sales growth of 2% to 2.7%. Meanwhile, DG forecasted its EPS to be between $6.80 and $7.55. DG shares closed down more than 8% on the day the results were released and have been on a downtrend since then.
Analysts’ consensus opinion on DG stock is bullish, with a “Moderate Buy” rating overall. Out of 27 analysts covering the stock, 11 advise a “Strong Buy” rating, three have a “Moderate Buy” rating, 12 recommend a “Hold” rating, and one gives a “Moderate Sell.” The average analyst price target for DG is $149.60, indicating a 26.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
