Dollar General (DG) on Thursday reported better-than-expected fourth-quarter sales, but profit missed estimates due to costs from a review of the retailer’s store portfolio.
The chain posted earnings per share (EPS) of $0.87 on revenue of $10.30 billion. Analysts polled by Visible Alpha estimated $1.52 and $10.26 billion, respectively. The retailer said the profit figure included a $0.81-per-share negative impact from an “optimization review” of its stores. After the review, the company “plans to close 96 Dollar General stores and 45 pOpshelf stores, and convert an additional six pOpshelf stores to Dollar General stores in the first quarter.”
“While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities,” CEO Todd Vasos said.
Same-store sales rose 1.2% year-over-year, above analysts’ 0.93% growth projection.
Dollar General expects fiscal 2025 EPS of $5.10 to $5.80, net sales to grow by 3.4% to 4.4%, and same-store sales to increase by 1.2% to 2.2%. Analysts were expecting full-year EPS of $5.94, revenue growth of 3.96%, and same-store sales growth of 1.77%.
Oppenheimer analysts said Tuesday they expected Dollar General’s 2025 projections to come in below consensus, adding they think the company’s ongoing turnaround effort has so far been “masked by both macro and competitive headwinds.”
Shares of the retailer were up 4% immediately following Thursday’s report. They entered the day down more than 50% over the past year.