Hey fabulous money queens! šāāļø Let’s spill some financial tea about Dollar General, a retail powerhouse that’s proving you can be a bargain hunter and a savvy investor at the same time. Hereās how this discount dynamo is making waves and why it might just be your next shopping spree in the stock market. šāØ
Picture this: It’s 2008, the economy’s having a meltdown. But while everyone else was struggling, Dollar General was out here slaying with a 9% growth in same-store sales. Fast forward to 2025, and despite battling some fierce competition from giants like Walmart, Dollar General is bouncing back with a “Back to Basics” strategy right when economic chaos hits due to a trade war. Their stock skyrocketed 50% in a few months, even scoring a 16% jump in just one day after a stellar earnings report. Talk about a glow-up! š
**The Glow-Up Continues**
In the first quarter (ending May 2), Dollar General reported a 2.4% bump in same-store sales and a sweet 5.3% revenue growth, hitting $10.4 billion, a tad above what analysts predicted. Their gross margin perked up by 78 basis points to 31.0%, thanks to better inventory management and less shrinkage (the fancy term for theft and loss). š¼ On the flip side, they did see an uptick in expenses due to higher labor costs and the like. But the cherry on top? Their earnings per share (EPS) climbed 8% to $1.78, smashing the forecast of $1.49. š
Management did mention some market jitters due to tariffs, but thanks to their fab first-quarter performance, theyāve upped their full-year guidance. Comps growth target is now 1.5% to 2.5% (up from 1.2% to 2.2%), and EPS estimates are slightly perked up too. Theyāre optimistic about cutting shrink further, especially with lower employee turnoverāalways a win in my book! š
**Trading Down is the New Up**
Hereās where it gets interesting: Dollar General shines when the economy gets wobbly. While their core low-income customers are feeling the pinch (25% reporting less income than last year), theyāre also pulling in higher-income shoppers who are looking for deals. Itās like luxury on a budget, darling! And management is keen on keeping these new friends around. š
**So, Is Dollar General a Buy?**
While you might not snag the stock as cheaply as a few months back, Dollar General is still set to thrive amid economic rollercoasters. Their Back to Basics strategy is clearly paying off with growth in comps, margins, and profits. Plus, with plans to open new stores and give existing ones a chic makeover, theyāre poised for long-term growth. š
Their game plan of blanketing the country with convenient discount stores has been a winner, and the latest comeback is promising. Even with the stock down over 50% from its all-time high, Dollar General could be a smart bet for the future.
So, are you ready to invest like the stylish, savvy queen you are? Letās grow those coins, one dollar at a time! š Slide into my DMs for more tips, or join my mailing list to keep rocking your financial world. š°āØ