Dollar General (DG) Stock Forecast & Price Target

Dollar General's total sales rose by 4.5% to $10.3 billion, reflecting a steady performance even amid challenging market conditions, with comparable store sales showing a modest increase of 1.2%. The expansion into upper-income consumer cohorts and the ongoing partnership with DoorDash, which has scaled from 75 to 400 stores for same-day delivery, showcases the retailer's adaptability and commitment to enhancing customer service and convenience. Furthermore, Dollar General is strategically targeting a net sales growth of 3.5% to 4% starting in 2025, supported by anticipated comparable sales growth of 2% to 3% and stable new unit growth of 2%, indicating a robust outlook for future revenue generation.

Dollar General is facing a decline in its operating margin, projected to compress by 18 basis points to 4.6%, alongside a reduction in its fourth-quarter EPS estimate from $1.60 to $1.55, indicating deteriorating profitability. Additionally, the company has revised its 2025 EPS guidance downward to a range of $5.10 to $5.80, reflecting a challenging consumer spending environment and increased competition from retail giants such as Walmart, Aldi, and Lidl. Compounding these issues, expected EBIT dollars are projected to decline by 12% to $510 million, illustrating a sluggish growth outlook underpinned by ongoing pressures on lower-income households and external cost factors such as tariffs.