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Stock impact report

BofA upgrades Dollar General on improved visibility on retailer's recovery path [Yahoo! Finance]

Dollar General Corporation (DG) 
Last dollar general corporation earnings: 3/12 06:55 am Check Earnings Report
US:NYSE Investor Relations: investor.shareholder.com/dollar
Company Research Source: Yahoo! Finance
Dollar General is expected to stabilize EBITDA in the second half of 2025 and resume margin growth in fiscal 2026 on the back of simplified execution, increasing trade-in behavior, and store remodels as key factors supporting comparable sales and margin recovery. The retailer's financial strategy remains defensive, focusing on debt repayment with no share buybacks planned until leverage approaches three times EBITDA. BofA noted that the company's low-BBB credit rating was an overdue clearing event and described its tempered fiscal 2025 guidance as "sensible," given uneven first-half comparisons. Dollar General's core low-income customers remain under pressure but are stabilizing as they adjust to persistent inflation, BofA said. More notably, the retailer is seeing larger basket sizes and increased unit sales, reflecting trade-in behavior from middle-income consumers facing maxed-out credit card spending, softening job growth, and rising household expenses. Trade-in dynamic Show less Read more
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