Dollar General Corporation (DG) will be releasing their quarterly earnings report today. The company is expected to show an increase in sales for the quarter.

Estimates place earnings at 5.6% above where they were last year for this same quarter, which would place sales at $9.87 billion. The company expects to grow even further in 2024 by successfully drawing in budget-minded shoppers with its discount stores, especially amid high inflation rates.

The company may have trouble with its profits, though, as increased operating expenses will make it difficult for the company to produce the kind of profit that boosts share prices. Currently, Dollar General stock is down 0.03% to $145 per share.

That is higher than the year’s starting price of $140, but it is not as high as the stock has climbed for the year. DG stock peaked in 2024 in March at $161 per share.

Dollar General does not always do consistently well in its earnings reports, often demonstrating mixed results. While the last quarter saw the company exceed expectations by 5.2%, overall for the last four quarters, the company is down 1.3% in earnings.

Should You Invest in Dollar General Stock?

Dollar General has attempted to expand their company over the past few years by growing their private fleet and trying a few new innovations. Their DG Fresh selection offers customers a selection of fresh foods like eggs, milk, and deli meats not previously sold in their stores. Their SKU rationalization program changes up how items are arranged in the store so that they make more sense for customer shopping habits.

However, the company has had to close numerous stores in recent years, and they downsized their physical presence. They are not the ubiquitous presence that they were before Covid, but they could still grow from the previous quarter.

We expect inflation to hold the stock back and keep retail sales low for now, and this stock could be a risky one at this point.