Dollar General Likely To Benefit From Inflation Driven Customer Traffic, Says Analyst

Dollar General Likely To Benefit From Inflation Driven Customer Traffic, Says Analyst
  • Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Dollar General Corp DG with a price target of $280.00.
  • The analyst noted that DG reported a Q2 earnings beat, driven by better-than-anticipated sales and profitability, reflecting the impact of inflation and consumers continuing to increase reliance on Dollar General amidst a challenging economic environment.
  • The analyst said the Q2 comparable sales reflect increases in both traffic and average ticket, with sales being strongest in consumables.
  • Feldman added that, like most retailers, Dollar General is facing pressures from lapping the U.S. government stimulus and elevated costs.
  • The analyst expects the company’s business to grow as consumers continue to increase their reliance on Dollar General.
  • He also cited Dollar General’s performance to be driven by new stores and remodels and a number of initiatives, including the expansion of cooler doors, DG Fresh supply chain upgrades, Fast Track inventory/labor management, and the expansion of non-consumables initiatives.
  • Price Action: DG shares are trading lower by 1.46% at $243.83 on the last check Thursday.
  • Photo Via Company

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