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Dollar General (DG+5.64%), often a barometer of economic health among value-conscious consumers, had a mixed bag to investors in their latest earnings guidance, but seemed to offer some glimmers of optimism.
The stock was up in pre-market trading as the company announced it had beat expectations for the key holiday period. And the company expects annual same-store sales growth between 1.2% and 2.2%. The high end is slightly above analysts’ average estimate of a 1.82% rise.
Despite the rosier outlook for 2025, profit fell short in the quarter that ended in January. Earnings were 87 cents a share, trailing Wall Street’s average projection of $1.50. The company cited store closings and other internal adjustments as reasons for the miss.
Dollar General operates 20,000 stores across the United States, with plans to open 500 more this year. The chain has managed to carve out a niche even as other dollar stores have struggled. Big Lots (BIG) went into bankruptcy and Dollar Tree has struggled to make its acquisition of Family Dollar profitable.