🟢 At a Glance:
Dollar General just reported its Q1 FY25 earnings, and it’s a mix of:
- ✅ Improved profit
- ❌ Shrinking same-store sales
- 🚨 A very cautious outlook
Welcome to the retail rodeo, where inflation is cooling, but margins are still on thin ice — and Dollar General’s cart is swerving between “value” and “volume.”
💸 Key Financials (Q1 FY25)
| Metric | Q1 FY25 | YoY Change |
|---|---|---|
| 🛍️ Net Sales | $9.91 billion | ▲ 6.1% |
| 💰 Net Income | $513.4 million | ▲ 26.5% |
| 📈 Diluted EPS | $2.31 | ▲ 27.6% |
| 🏪 Same-Store Sales | ▼ 1.3% | ↓ |
| 📦 Gross Margin | 32.2% | ▲ 89 bps |
🧠 TL;DR: Dollar General sold more overall, earned way more, but sold less per store. It’s like throwing a huge party… but fewer guests showed up to each room.
💥 What Went Right?
- Net sales jumped despite weak same-store sales — thanks to new store openings
- Gross margin improved due to better inventory management and reduced
- shrink (aka theft shrinkage + clearance damage)
- SG&A expenses were tightly controlled, despite store growth
- Net income shot up 26.5% — biggest win of the quarter
CFO be like: “Finally, profits are profiting again.”
🧻 What’s Still Crumpled?
- Same-store sales down 1.3% Customers might be trading down to even cheaper or simply buying less.
- Consumables performed well (snacks, essentials), but non-consumables (home, apparel) remained weak.
- Traffic & basket size? Not thrilling.
🏗️ Store Count
- Dollar General opened 197 new stores in Q1.
- Plan: 800+ net new stores in FY25.
Imagine a DG on every rural highway exit and behind every Walmart. That’s the vibe.
🔮 Updated FY25 Guidance
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