Strong Performance Yet… Discount Retailer Shares Plunge 5% on Conservative Guidance

Dollar General Corp (DG) closed at $118.50 on the New York Stock Exchange on the 24th, down 5.36%. In a single day, roughly $1.3 billion in market value—about ₩1.8 trillion—evaporated, leaving the company with an enterprise value of approximately $26 billion (around ₩35 trillion).

On the 12th, Dollar General reported fiscal 2025 fourth-quarter earnings per share (EPS) of $1.93, beating the street estimate of $1.66, and delivered revenue above consensus. However, its guidance for fiscal 2026 EPS of $7.10 to $7.35 was viewed as conservative, sparking increased stock volatility. The company also projected first-quarter same-store sales growth in the low-2% range, reigniting concerns over consumer spending softness and margin pressures.

With more than 19,000 locations nationwide—particularly in rural and lower-income communities—Dollar General is a leading discount retailer focused on everyday essentials, often seen as a winner in a downtrading environment. CEO Todd Vasos, who returned in October 2023 after serving from 2015 to 2022, is driving a turnaround through cost-structure optimization, store remodels and renewed pricing competitiveness.