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.
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 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 expects capital expenditures, including those related to investments in its strategic initiatives, of between $1.3 billion – $1.4 billion.
Dollar General Corporation’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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