From Yahoo Finance: 2025-03-28 14:40:00

BofA Securities analyst Robert F. Ohmes reiterated a Buy rating on Dollar General Corporation, with a price forecast of $90.00. Dollar General is expected to benefit from increasing trade-in activity, driving comparable sales. Early signs of this trend were seen in late third quarter, leading to larger basket sizes.

Rising credit card debt may have delayed trade-in from middle-income consumers, but reaching debt limits could further support this trend. Dollar General has seen inventory levels improve and store manager turnover is expected to stabilize. An accelerated store remodeling plan is in place to reduce costs.

Several drivers for gross margin expansion at Dollar General include strategic initiatives, shrink reduction, and lower damages. The DG Media Network and efforts to increase non-consumable sales are expected to drive growth. The Back to Basics strategy aims to enhance efficiency and reduce costs.

DG shares traded lower by 2.24% at $85.58. Analysts maintain, upgrade, and downgrade ratings for Dollar General, indicating a mix of perspectives on the company’s future performance. For more analyst ratings on DG, click on the provided link.

Dollar General’s profitability play is expected to drive margin expansion, according to an analyst. The company’s strategy to tackle debt and shrink could lead to increased profitability. Dollar General aims to enhance efficiency and reduce costs through various initiatives.

Read more: Dollar General’s Strategy To Tackle Debt And Shrink Could Drive Margin Expansion, Analyst Says