Dollar General Corp. DG shares traded under pressure on Wednesday morning, despite reporting on Tuesday that it had achieved healthy same-store sales growth.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

BofA Securities On Dollar General

Analyst Robert Ohmes maintained a Buy rating, while raising the price target from $115 to $135.

Dollar General reported fiscal first-quarter earnings of $1.78 per share, significantly beating Street expectations of $1.47 per share, Ohmes said in a note. Same-store sales grew 2.4%, much higher than the consensus of 1.1%, driven by 2.7% ticket growth, while traffic declined by 0.3%, he added.

Management raised the low end of their full-year earnings guidance by 10 cents per share to $5.20-$5.80 per share, "reflecting 1Q upside as well as tariff impact uncertainty," the analyst stated. Dollar General's Back to Basics initiatives seem to be working, "which should continue driving efficiencies over time," he further wrote.

Truist Securities On Dollar General

Analyst Scot Ciccarelli reiterated a Hold rating, while lifting the price target from $93 to $112.

Dollar General's quarterly results were better than was initially expected, Ciccarelli said. The company delivered positive comps in all three months of the quarter and across all four of its merchandise categories, he added.

"While we think it's fair to question the sustainability of these trends (tariffs, consumer trends, product mix, etc.), the year is off to a solid start," the analyst wrote. The company raised its full-year comps guidance by 30 basis points (bps) to 1.5%-2.5% and its earnings outlook to $5.20-$5.80 per share, from $5.10-$5.80 per share, the analyst stated.

Check out other analyst stock ratings.

JPMorgan On Dollar General

Analyst Matthew Boss reaffirmed a Neutral rating, while raising the price target from $88 to $95.

Dollar General reported its earnings around 19% higher than Street expectations, with the outperformance being driven by same-store-sales growth of 2.4% versus a consensus of 1.3%, gross margin expanding by 78 bps to 31.0% and SG&A deleverage of 77bps to 25.4%, Boss said.

Management has raised the low end of its 2025 revenue growth outlook to 3.7%-4.7%, up from its prior projection of 3.4%-4.4%, the analyst stated. The company indicated it could mitigate most of the potential tariff headwind by "negotiating cost concessions, shifting manufacturing to other countries where possible, re-engineering products, or finding substitute products," he further wrote.

Telsey Advisory Group On Dollar General

Analyst Joseph Feldman maintained a Market Perform rating, while taking the price target higher from $100 to $120.

Dollar General posted operating margins of 5.5%, beating the consensus of 4.7%, Feldman said. Although the company's core lower-income consumers are facing spending constraints, the middle- and higher-income households are shopping more frequently and spending more, he added.

While traffic declined by 0.3%, "it was up 4% on a two-year stacked basis, and it has been positive in 2Q25-to-date," the analyst wrote. Dollar General's Back-to-Basics initiatives resulted in market share gains in both consumables and non-consumables, he further stated.

KeyBanc Capital Markets On Dollar General

Analyst Bradley Thomas reiterated a Sector Weight rating on the stock.

Dollar General reported better-than-expected results, with its strategic initiatives taking hold, Thomas said. The company achieved positive comps in consumables, apparel, home and seasonal, with the latter two categories being up 3% in the quarter, he added.

"The gross margin outlook is favorable, supported by 60 bps lower shrink, which could continue this year and still leave 20 bps incremental improvement opportunity after 2025," he further wrote.

DG Price Action: Shares of Dollar General had declined by 1.76% to $110.61 at the time of publication on Wednesday.

Read More:  
• Dollar General Boosts Annual Outlook Despite Ongoing Tariff Uncertainty

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