Discount retailer Dollar General (DG) is scheduled to announce its results for the first quarter of Fiscal 2025 on Tuesday, June 3. DG stock has rallied 28.5% so far this year, reflecting investors’ confidence in the company’s turnaround efforts. Wall Street expects Dollar General to report earnings per share (EPS) of $1.49, reflecting a year-over-year decline of 10%.
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Revenue is estimated to rise 3.9% to $10.29 billion.
As part of its strategic plans, Dollar General has been optimizing its store footprint. It plans to execute approximately 4,885 real estate projects in Fiscal 2025, including opening approximately 575 new stores in the U.S. and up to 15 new stores in Mexico, fully remodeling nearly 2,000 stores, remodeling about 2,250 stores through Project Elevate, and relocating around 45 stores.
According to Main Street Data, Dollar General ended Fiscal 2024 with 20,594 stores, marking a 3.04% year-over-year growth.
Analysts’ Views Ahead of Dollar General’s Q1 Earnings
Heading into the Q1 FY25 results, Telsey analyst Joseph Feldman raised the price target for Dollar General stock to $100 from $85 while maintaining a Hold rating. The 5-star analyst maintained Dollar General’s Q125 and 2025 projections, reflecting early gains from several initiatives, including remodels, merchandising newness, digital/media, and its Back to Basics strategy.
However, Feldman expects macro trends to offset these positives. In particular, he noted tariffs, increased costs, operational inconsistency, and growing competition from other value-oriented retailers, like Aldi and Walmart (WMT), with these negatives keeping his visibility clouded.
Meanwhile, Bernstein analyst Zhihan Ma increased his price target for Dollar General stock to $120 from $105 while maintaining a Buy rating. The analyst raised his price target based on higher comparable sales expectations for Q2-Q4 FY25 and FY26, reflecting expectations of trade down benefit. He also made minor adjustments to items below the line (like tax rate). Ma stated that the expanded multiple for DG stock accounts for greater growth expectations and better relative positioning due to low tariff exposure.
Options Traders Anticipate a Notable Move on Dollar General’s Q1 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 9.3% move in either direction in DG stock in reaction to Q1 results.
Is DG a Good Stock to Buy Now?
With nine Buys, 11 Holds, and two Sells, Wall Street has a Moderate Buy consensus rating on Dollar General stock. The average DG stock price target of $96.38 indicates that the stock is fully valued at current levels.
