• Earnings per share (EPS) of $0.89, missing the estimated $0.94.
• Revenue of approximately $10.18 billion, slightly above the estimated $10.14 billion.
• A 5% increase in net sales, reaching $10.2 billion despite economic challenges.

Dollar General (NYSE: DG) is a leading discount retailer in the United States, competing with other discount retailers like Dollar Tree and Family Dollar. On December 5, 2024, Dollar General reported an EPS of $0.89, falling short of the estimated $0.94. However, the company generated revenue of approximately $10.18 billion, slightly surpassing the estimated $10.14 billion.

Despite the earnings miss, Dollar General's sales performance was robust, as highlighted by Market Watch. The company reported a 5% increase in net sales, reaching $10.2 billion, with same-store sales rising by 1.3%. This sales beat occurred despite ongoing consumer restraint and the impact of multiple hurricanes, which disrupted business operations and led to $32.7 million in hurricane-related expenses. These challenges contributed to a 25.3% decrease in operating profit, now at $323.8 million, and a 29.4% drop in diluted EPS to $0.89.

Dollar General's resilience in a difficult economic environment is evident in its financial strategies. The company has revised its annual profit forecast, reducing the upper end due to hurricane-related expenses. Despite these challenges, Dollar General plans to expand its operations by opening new stores and remodeling existing ones in the coming year. The launch of the Project Elevate initiative aims to enhance the mature store remodel program, further supporting the company's growth strategy.

Financially, Dollar General maintains a price-to-earnings (P/E) ratio of approximately 12.35, indicating the market's valuation of the company's earnings. The price-to-sales ratio stands at about 0.44, suggesting that the company's stock is valued at less than half of its annual sales. The enterprise value to sales ratio is approximately 0.87, reflecting the company's total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio is around 10.39, indicating how the company's valuation compares to its cash flow from operations.

Dollar General's financial health is further supported by a debt-to-equity ratio of about 1.16, showing the company's leverage and how it finances its operations. The current ratio is approximately 1.22, indicating the company's ability to cover its short-term liabilities with its short-term assets. The company's earnings yield is approximately 8.1%, providing insight into the return on investment for shareholders. Despite the challenges faced, Dollar General's CEO, Todd Vasos, expressed satisfaction with the team's performance during the quarter, praising their dedication to serving communities during challenging times.