Dollar General Reports Mixed Q3 Results as Stock Declines

The retailer posted modest revenue growth but saw declining profits and shares drop over 3% as customers face financial strain.

Dollar General's Q3 2024 revenue increased to $10.18 billion, slightly surpassing Wall Street expectations but reflecting slower growth compared to prior years.
Earnings per share fell to $0.89, below analyst projections and down from $1.26 in the same quarter last year, driven by higher costs and markdowns.
Same-store sales grew by 1.3%, meeting revised forecasts, but operating profit dropped 25.3% due to rising expenses and hurricane-related costs.
CEO Todd Vasos attributed the company's resilience to its Back to Basics initiative and announced plans for 730 new stores and 1,620 remodels in fiscal 2024, with further expansion into 2025.
Dollar General shares have declined over 45% in 2024, reflecting investor concerns about tightening profit margins and the financial challenges faced by its core customer base.