Gordon Haskett Upgrades Dollar General (DG) Stock

On June 3, Gordon Haskett analyst Chuck Grom upped Dollar General Corporation (NYSE:DG)’s stock to “Accumulate” from “Reduce” with a price objective of $125, as reported by The Fly.

Gordon Haskett Upgrades Dollar General (DG) Stock

A busy shopping aisle filled with discounted items in a retail store.

The analysts stated that the bar was high, but the company was able to deliver. Furthermore, the analyst highlighted that Dollar General Corporation (NYSE:DG) is one of the few retailers that has raised guidance after its Q1 2025 earnings print.

For FY 2025, it expects net sales growth of ~3.7% – 4.7% as compared to the prior expectation of ~3.4% – 4.4%, and diluted EPS of around $5.20 – $5.80 compared to the prior expectation of ~$5.10 – $5.80. Dollar General Corporation (NYSE:DG) expects capital expenditures, including those related to investments in its strategic initiatives, of between $1.3 billion – $1.4 billion.

Dollar General Corporation (NYSE:DG)’s ability to raise its guidance numbers highlights its improved confidence in its executional capabilities and illustrates that it remains insulated from the wide-ranging tariff overhang, added Grom. In Q1 2025, the company’s net sales rose by 5.3% to $10.4 billion as compared to $9.9 billion in Q1 2024.

The improvement in net sales was because of positive sales contributions from new stores and growth in same-store sales. This was partially mitigated by the impact of store closures. The same-store sales rose by 2.4% YoY in Q1 2025, implying a 2.7% rise in average transaction amount and a 0.3% decline in customer traffic.

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Disclosure: None.