Dollar General Stock Just Popped, but Is the Worst Really Behind It?
From Yahoo Finance: 2025-06-07 03:55:00
Dollar General is seeing more affluent customers trading down, but its core customer base is still under pressure. The stock has rallied, up 50% in 2025 after a strong fiscal first-quarter report. The retailer is managing tariffs by working with vendors and adjusting its product lineup, with a focus on higher-income consumers. Same-store sales increased by 2.4%, driven by growth in food, seasonal, and home & apparel categories. Dollar General’s revenue rose 5% to $10.4 billion, with EPS up 8% to $1.78, beating analyst expectations. Gross margin increased to 31%, and the company raised its full-year guidance for revenue, same-store sales, and EPS. Dollar General plans to open 575 new stores in the U.S. and up to 15 in Mexico. Despite the positive performance, the stock is no longer a bargain and may not be worth chasing at its current valuation.
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