Dollar General Once Reported $1 Billion In Lost—Or Stolen—Merchandise. Here’s What Changed.
Key takeaways
- Dollar General increased its profit outlook for the year, with estimates of annual earnings reaching $7.45, up 10 cents from earlier projections.
- Shares of Dollar General dropped by 1.8% shortly after trading opened on Tuesday.
- Dollar General’s inventory shrink of $928 million was roughly 84% of its $1.1 billion net income in 2024, underscoring merchandise losses as a headwind on profits.
Topline Dollar General on Tuesday reported quarterly earnings that surpassed Wall Street’s expectations, as the discount retailer was a far cry from the nearly $1 billion in inventory shrink—a mix of theft, damage and other losses—that once weighed on its profits.
Profits for the discount retailer jumped after it reported a further decline in losses from shoplifting and damages.Getty Images Key Facts Dollar General announced a 3.4% annual increase in revenue to $10.7 billion, just under consensus analyst estimates of $10.8 billion, as earnings of $2 per share beat projections of $1.89 per share, according to FactSet.
Dollar General increased its profit outlook for the year, with estimates of annual earnings reaching $7.45, up 10 cents from earlier projections.