Dollar General's (DG, Financial) latest earnings are a mixed bag. Profits fell short—$0.89 per share vs. the $0.94 analysts were expecting. But sales told a different story, climbing 5% year-over-year to $10.2 billion, comfortably topping forecasts. Same-store sales nudged up 1.3%, despite hurricane-related hits to the bottom line. CEO Todd Vasos credited a laser-focused "Back to Basics" approach for steadying the ship, even as the company faced inventory losses and property damage from multiple storms.
The forward outlook is where things get interesting. Dollar General revised its full-year guidance slightly downward but revealed ambitious growth plans for 2025. The headline? Nearly 4,900 real estate projects, including 575 new store openings and thousands of remodels under the Project Elevate banner. CFO Kelly Dilts underscored the focus on upgrading mature stores to enhance customer experience and drive incremental sales—essentially doubling down on core markets while laying groundwork for long-term growth. Capital investments are set to hit $1.4 billion this fiscal year, signaling a clear commitment to expansion.
Investors are cautiously optimistic. The stock ticked up nearly 2% in premarket trading, though it's still down a painful 44% year-to-date. The company is clearly banking on its strategy to reignite momentum, focusing on what it does best: delivering value to its budget-conscious customers while carving out a sustainable growth path in the face of an unpredictable retail environment.
