Dollar General Is Down 7% - Here's Why Wall Street Is Divided on DG Stock

"Dollar General's Q4 FY2025 EPS came in at $1.93 per share, beating analyst estimates, while revenue hit $10.91 billion, also ahead of expectations, with net sales up 5.9% year-over-year. Full fiscal year 2025 net sales reached $42.7 billion, up 5.2%, with full-year profit of $1.51 billion. On paper, Dollar General is executing well."

"FY2026 guidance projects flat to 1% comparable sales growth and adjusted EPS of $6.30 to $6.80, both landing below what the market was pricing in. For a stock that has nearly doubled off its lows over the past year, that kind of conservative print is enough to shake out worried traders."

"The underlying business story here is a discount retailer that serves a customer base under real financial pressure. The University of Michigan Consumer Sentiment Index sits at 56.4; that's well below the 80 threshold that separates neutral from pessimistic territory, and that number has been bouncing around recessionary levels for most of the past year."

Dollar General reported strong Q4 results with EPS of $1.93 and revenue of $10.91 billion, both exceeding analyst expectations. Full-year 2025 net sales reached $42.7 billion with 5.2% growth. Performance improvements included higher average ticket sizes, increased customer traffic, lower shrinkage, and better inventory management. However, management's FY2026 guidance projected only flat to 1% comparable sales growth with adjusted EPS of $6.30 to $6.80, falling below market expectations. This conservative outlook triggered a stock decline despite operational success, reflecting investor concerns about future growth amid challenging consumer sentiment conditions.

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