Dollar General Reports Mixed Results as Inflation Pressures Core Customers

The retailer's earnings fell short due to store closures, while sales growth and higher-income shoppers provided some optimism.

Dollar General's Q4 revenue beat expectations at $10.3 billion, but profits fell short due to $232 million in charges from store closures and portfolio adjustments.
Core customers, earning under $40,000 annually, are struggling with inflation, with many reporting they can only afford basic essentials or are cutting back on necessities.
The company announced plans to close 96 Dollar General stores and 45 Popshelf locations while converting six Popshelf stores into standard Dollar General formats.
Same-store sales grew by 1.2%, driven by increased spending per transaction, though overall customer traffic declined by 1.1%.
Dollar General projects modest sales growth for 2025 but expects ongoing financial challenges for its core customers and potential impacts from tariffs and government policy changes.