What to look for when Dollar General (DG) reports its Q4 2024 earnings results | AlphaStreet

Shares of Dollar General Company (NYSE: DG) have been up over 2% on Tuesday. The inventory has dropped 6% over the previous three months. The low cost retailer is scheduled to report its earnings results for the fourth quarter of 2024 on Thursday, March 13, earlier than market open. Right here’s a look at what to anticipate from the earnings report:

Income

Analysts are projecting income of $10.26 billion for Dollar General in Q4 2024, which signifies a progress of 4% from the identical quarter a yr in the past. Within the third quarter of 2024, web gross sales elevated 5% year-over-year to $10.2 billion.

Earnings

The consensus goal for earnings per share in Q4 2024 is $1.50, which suggests a decline of 18% from the prior-year interval. In Q3 2024, EPS fell 29% YoY to $0.89.

Factors to word

In a difficult financial atmosphere, customers search for most worth of their purchases. Dollar General is well-positioned to serve these prospects by way of its low worth factors. In Q3, the corporate noticed its same-store gross sales enhance 1.3%, pushed by will increase in buyer visitors and common transaction quantity. Similar-store gross sales have been primarily fueled by progress within the consumables class however this was partly offset by declines in all the opposite classes. The energy in consumables is predicted to have continued within the fourth quarter.

Final quarter, DG witnessed a heightened promotional atmosphere and anticipated this to proceed by way of the rest of the yr, which is probably going to be mirrored within the fourth quarter efficiency. Larger markdowns and a bigger portion of gross sales coming from the consumables class have continued to weigh on margins. In Q3, gross revenue margin decreased 18 foundation factors YoY to 28.8%. These pressures are possible to have continued by way of the fourth quarter.

Dollar General can be anticipated to profit from its Again to Primary initiatives that are centered on its shops, provide chain and merchandising. As a part of these efforts, the corporate has been transforming its shops, bettering its in-stock ranges, and increasing its supply companies to serve its prospects higher and drive progress.