09:05 AM EDT, 03/13/2025 (MT Newswires) -- Dollar General's ( DG ) fourth-quarter earnings fell more than Wall Street's expectations but sales topped estimates, while the discount retailer provided a full-year bottom-line outlook below market projections.

The company anticipates per-share earnings to be in a range of about $5.10 to $5.80 for fiscal 2025, while the current consensus on FactSet is for $5.90. Sales are pegged to rise by about 3.4% to 4.4%. In the previous fiscal year, net income dropped 32% year over year to $5.11 and sales improved 5% to $40.61 billion.

Same-store sales are expected to grow between roughly 1.2% and 2.2% for the current fiscal year, while the Street is looking for an increase of 1.8%. In fiscal 2024, same-store sales rose 1.4%. The retailer reiterated its plan to carry out about 4,885 real estate projects in fiscal 2025, including opening about 575 new stores in the US.

For the three-month period ended Jan. 31, Dollar General's ( DG ) net income tumbled 52% year over year to $0.87 per share, trailing the average analyst estimate on FactSet for $1.51. The result included a headwind of about $0.81 a share related to the retailer's review of its store portfolio. As part of the review, it plans to shut down 96 company stores and 45 pOpshelf stores, among other initiatives, in the ongoing quarter.

"We believe this review was appropriate to further strengthen the foundation of our business," Chief Executive Todd Vasos said in a statement. "While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities."

Sales advanced to $10.3 billion from $9.86 billion in the prior-year quarter, ahead of the Street's $10.26 billion estimate. Same-store sales inclined 1.2%, above the 0.9% increase modeled by the market, buoyed by a 2.3% gain in average transactions partially offset by a 1.1% decrease in customer traffic. Same-store sales rose in the consumables category, but home, seasonal and apparel products recorded declines, according to Dollar General ( DG ).

Shares of the company rose 5% in the most recent premarket activity.

Beginning 2026, the retailer is targeting EPS growth of more than 10% over the next five years. The company said it also aims to achieve sales growth of 3.5% to 4% starting this year over the same period, as well as same-store sales growth of about 2% to 3% starting between 2025 and 2026.

"We believe we are making the right investments and taking the appropriate actions to begin moving toward our updated long-term financial goals in the years ahead," Chief Financial Officer Kelly Dilts said in the statement. "We are focused on driving sustainable long-term growth on both the top and bottom lines, while creating long-term shareholder value."