Dollar General Corp (NYSE:DG) shares gained over 5% Thursday as the discount retail posted a narrow revenue beat for the fourth quarter despite earnings falling short of expectations.
Revenue of $10.18 billion, up 4.5% year-over-year, was ahead of estimates of $10.14 billion.
Earnings per share (EPS) of $0.89 missed estimates of $0.94.
The company said that during Q4 it conducted an optimization review of its dollar General and pOpshelf stores which has identified stores for closure or re-bannering.
It plans to close 96 Dollar General Stores and 45 pOpshelf stores while converting six additional pOpshelf stores to Dollar General stores.
“As we look to build on the substantial progress we made on our Back to Basics work in fiscal 2024, we believe this review was appropriate to further strengthen the foundation of our business,” Dollar General CEO Todd Vasos said in a statement.
“While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities.”
Outlook
For 2025, Dollar General projected revenue growth between 3.4% and 4.4%, compared to the Street consensus of 4.1%.
EPS is projected in the range of $5.10 to $5.80, missing the consensus of $5.85.