11:36 AM EDT, 08/26/2024 (MT Newswires) -- Dollar General's ( DG ) management might adjust the full-year 2024 earnings per share forecast to the lower end of its given range due to ongoing challenges in discretionary spending and mixed consumer data, Oppenheimer said in a note Monday ahead of the the discount retailer's quarterly results due Aug. 29.

Analysts, including Rupesh Parikh, said the company's Q2 outlook of $1.70 to $1.85 for EPS and low 2% sales growth seems "achievable." Chief Executive Todd Vasos' turnaround efforts, such as focusing on labor, supply chain, merchandising, and reducing shrink are promising. However, current economic challenges might continue to overshadow these improvements for the rest of 2024, they added.

"From here, we remain focused on management's ability to sustain comp momentum and stabilize/expand operating margins over time. Although we believe significant progress is being made, we now believe these efforts could be more meaningful to the financial delivery in full-year 2025 and beyond," the analysts said.

They said they updated their Dollar General ( DG ) model based on recent management comments, higher expectations for mix and shrink pressures, recent data, and their latest expense estimates, and think the discount retailer might adjust its full-year EPS forecast to the lower end of $6.80 to $7.55.

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