Dollar General (DG) Stock Forecast & Price Target

Dollar General's total sales rose 4.5% to $10.3 billion, supported by a comparable store sales growth of 1.2%. The retailer has successfully expanded its reach among middle and upper-income consumers, contributing positively to sales stability, while its partnership with DoorDash has significantly enhanced its delivery capabilities. Looking ahead, Dollar General is targeting net sales growth of 3.5% to 4%, alongside a steady increase in comparable store sales and new unit growth, illustrating a robust long-term growth strategy.

Dollar General's outlook is negatively impacted by a projected operating margin compression of 18 basis points, lowering its margin to 4.6% from a previous estimate of 4.7%. The retailer has also revised its earnings per share (EPS) estimates downward for both 4Q24 and 2025, reflecting expectations of EBIT dollars declining by 12% to $510 million due to a challenging consumer spending environment and heightened competition. Additionally, sluggish comparable sales growth and uncertainty regarding future EPS growth trajectory exacerbate concerns about the company's capacity to navigate pressure from tariffs affecting its lower-income customer base.