Dollar General Q1 net sales rose 3.4% to $10.8 billion with same-store sales up 2% and gross margin expanding 65 bps to 31.6%, prompting a full-year EPS outlook of $7.20–$7.45. Loop Capital lifted its target to $115 while Telsey lowered its to $125, reflecting divergent analyst views on consumer spending.
Dollar General delivered net sales of $10.8 billion, a 3.4% increase year-over-year, with same-store sales rising 2.0% alongside 1.4% growth in customer traffic.
Gross profit margin expanded by 65 basis points to 31.6%, prompting management to raise full-year earnings per share guidance to a range of $7.20–$7.45 and forecast same-store sales growth of 2.2%–2.7%.
Loop Capital lifted its price target to $115, while Telsey Advisory lowered its to $125, illustrating contrasting views on Dollar General’s growth prospects amid varied consumer spending expectations.
Challenges such as rising fuel costs and reduced SNAP benefits are prompting cautious outlooks from some analysts, as core customers in rural markets tighten discretionary spending on food and household items.
