- Dollar General‘s Earnings Per Share (EPS) for Q3 was $1.28, significantly higher than last year’s 89 cents and surpassing the estimate of 94 cents.
- Net sales reached $10.65 billion, a 4.6% increase from the previous year, slightly above the expected $10.62 billion.
- Comparable sales rose by 2.5%, outperforming both the previous year’s 1.3% and the estimate of 2.47%.
- The company’s gross margin increased to 29.9%, compared to 28.8% last year, beating the estimate of 29.5%.
- Selling, General, and Administrative (SG&A) expenses as a percentage of revenue were 25.9%, close to last year’s 25.7% and below the estimated 26.4%.
- Operating profit significantly rose to $425.9 million, marking a 32% increase from last year and exceeding the estimated $328.1 million.
- In light of its strong third-quarter performance and a positive outlook for the rest of the year, the company is raising its financial expectations, while acknowledging potential uncertainties in consumer behavior.
- The current market consensus includes 12 buy recommendations, 18 holds, and 1 sell for Dollar General stocks.
“`
Dollar General on Smartkarma
Independent analysts on Smartkarma like Baptista Research have been covering Dollar General closely. In one report, they discussed Dollar General‘s second-quarter 2025 results, showing mixed but promising growth. Net sales increased by 5.1% to $10.7 billion, driven by strong performances from new and existing stores. The company also saw market share gains in various product categories, with same-store sales up by 2.8% due to increased customer traffic and higher average baskets.
Another report from Baptista Research focused on Dollar General‘s first quarter of 2025. Despite facing challenges, the company demonstrated solid top-line growth, with net sales rising by 5.3% to $10.4 billion. They also opened 156 new stores, contributing to this growth. Same-store sales increased by 2.4%, with an impressive 2.7% growth in average basket size. Analysts are optimistic about Dollar General‘s strategic initiatives and potential for a turnaround.
A look at Dollar General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
As per the Smartkarma Smart Scores, Dollar General has received a positive outlook for its long-term performance. With a high score in Momentum, the company is showing strong market momentum that could potentially drive future growth. Moreover, its moderate scores in Value, Dividend, and Growth indicate a balanced approach to financial health and shareholder returns, which could contribute to its sustainability in the long run.
Dollar General, known for its chain of discount retail stores across the United States, offers a wide range of merchandise to its customers. Positioned dominantly in the southern, southwestern, midwestern, and eastern regions, the company focuses on providing various consumable and non-consumable products. With the overall Smart Scores reflecting a promising outlook, Dollar General appears well-positioned to continue its growth trajectory and maintain its resilience in the competitive retail landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
