TLDR

• Dollar General beat Q4 earnings with $1.93 EPS vs $1.66 estimate, and sales of $10.9B vs $10.8B expected.
• Comparable sales rose 4.3%, beating the 3.5% Wall Street forecast.
• The stock fell ~5% in premarket trading despite the beat.
• Fiscal 2026 EPS guidance of $7.10–$7.35 came in slightly below analyst estimates of $7.25.
• Same-store sales growth guidance of 2.2%–2.7% trails the 2.48% analyst consensus.

Dollar General posted its best quarterly comp sales beat in some time, and the market still sold the stock. That’s the kind of morning that makes traders scratch their heads.

For the fiscal fourth quarter, Dollar General earned $1.93 per share on $10.9 billion in revenue. Analysts had expected $1.65 per share and $10.8 billion in sales. Same-store sales grew 4.3%, well ahead of the 3.34%–3.5% Wall Street was penciling in.

Dollar General Corporation, DG

By nearly every scorecard metric, the quarter was a clean beat.

So why was the stock down roughly 5% in premarket trading? The answer lies in what comes next.

Dollar General guided fiscal 2026 same-store sales growth of 2.2% to 2.7%. The analyst consensus sat at 2.48% — right at the top of that range, not the midpoint. The full-year EPS range of $7.10 to $7.35 per share also came in slightly under analyst calls for $7.21 at the midpoint.

The guidance, in short, was soft.

What’s Weighing on the Outlook

The U.S. unemployment rate ticked up to 4.4% in February from 4.3% in January. Consumer prices are also expected to have accelerated in February, driven by tariffs and rising energy costs tied to Middle East tensions.

Those macro pressures are hitting Dollar General’s core customer — the lower-income shopper — hard. That group is pulling back on discretionary spending, which directly impacts the mix of items Dollar General sells.

Competition is another factor the company called out. Walmart has been capturing value-focused shoppers, including some who traditionally shopped at dollar stores. Amazon is also winning over budget-conscious buyers online.

Dollar General has responded by keeping the majority of its products at or below $1, and that strategy helped deliver the Q4 beat. But it’s a tougher road going forward.

The Stock’s Run-Up May Have Done Some of the Damage

Dollar General stock entered Thursday up more than 81% over the prior 12 months. That kind of run builds in a lot of good news, which means a solid but not exceptional outlook gets punished.

Back in February, Citi Research analyst Paul Lejuez had flagged this dynamic, writing that Q4 earnings were unlikely to be “an event that will drive the stock higher” given how elevated expectations had become.

The stock’s sell-off Thursday looks like that call playing out.

Rival Dollar Tree, which reports earnings next week, fell about 1.1% in sympathy.

Dollar General’s efforts to offer attractive holiday deals and maintain low price points paid off in Q4. The company reported $10.9 billion in fourth-quarter revenue, the comparable sales figure of 4.3% was the headline, and EPS of $1.93 per share cleared the bar by a wide margin.

The post Dollar General (DG) Stock Drops 5% Despite Crushing Q4 Estimates – Here’s Why appeared first on CoinCentral.

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