Dollar General (NYSE:DG) delivered better-than-expected fourth-quarter earnings, driving its stock 5% higher intra-day today as the discount retailer showcased improved execution and steady sales growth.
For the quarter, the company posted adjusted earnings per share of $1.68, exceeding analyst expectations of $1.50. Revenue climbed 4.5% year-over-year to $10.3 billion, narrowly surpassing projections of $10.26 billion.
Same-store sales increased 1.2%, supported by a 2.3% rise in average transaction value, though this was partially offset by a 1.1% decline in foot traffic. Growth in the consumables segment helped offset weaker sales in seasonal, home, and apparel categories.
Looking ahead, Dollar General expects net sales to grow between 3.4% and 4.4% in fiscal 2025, with same-store sales growth projected at 1.2% to 2.2%. The company also forecasted diluted EPS between $5.10 and $5.80, signaling a cautious but stable outlook as it continues refining its store portfolio and operational strategies.