Dollar General Corp (NYSE:DG) reported better-than expected fourth-quarter earnings. The following are the comments from analysts for the same.

Piper Sandler analyst Peter Keith reiterated a Neutral rating on the shares and raised the price target from $79 to $81.

DG reported fourth-quarter earnings per share of $0.87, which included a charge of $0.81 related to its store portfolio review and closures. Excluding these charges, the company would have exceeded consensus expectations of $1.51, said the analyst.

The company posted a 1.2% comp growth, above the 0.9% consensus, driving revenues up 4.5% year-over-year to $10.30 billion, surpassing the expected $10.26 billion.

Gross margin of 29.4% was slightly above expectations, though SG&A expenses rose due to the portfolio review. Inventories were down 4% overall, and 6.5% on a per-store basis.

For 2025, DG guided an EPS range of $5.10 to $5.80, slightly below consensus of $5.83. The company expects flat EPS growth in 2025 due to increased real estate projects, store closures, and sales challenges in the first quarter.

Positive factors include increased sales from upper-income consumers and plan to expand the same-day delivery partnership with DoorDash to 10,000 stores.

Meanwhile, sluggish comp growth, unclear EPS growth trajectory, and potential tariff impacts on lower-income customers are concerns, concluded the analyst.

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Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating on the shares with a price target of $85.00.

According to the analyst, Dollar General is transitioning from a growth retailer to a more mature one, focusing on slower unit growth and enhancing in-store operations.

This shift, led by CEO Todd Vasos, aims to boost operating profit and EPS growth (10%+ by 2026) while generating healthy cash flow for dividends and share buybacks.

The company is progressing with key initiatives like remodels, merchandising, and its Back to Basics strategy. While, challenges such as macro trends, higher labor costs, and operational inconsistencies persist.

Dollar General sees 2025 EPS of $5.10 – $5.80, below the FactSet consensus of $5.83.

Profitability will face challenges from promotions, a shift towards consumables, and higher costs, including wages, incentive compensation, and utility expenses, opined the analyst.

Price Action: DG shares traded lower by 0.86% at $79.26 at last check Friday.

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