01:05 PM EDT, 03/11/2025 (MT Newswires) -- Dollar General ( DG ) could introduce a fiscal 2025 guidance that's below Wall Street's expectations amid factors such as macro and competitive challenges, Oppenheimer said Tuesday.

The brokerage lowered its full-year earnings estimate for the discount retailer to $5.50 a share from $5.70, reflecting dimmed expectations for the first three quarters. Analysts surveyed by FactSet are projecting EPS of $5.89.

A potentially disappointing guide would reflect "difficult expense laps," ongoing wage pressures, and below algorithm sales growth amid macro challenges and increased competition, Oppenheimer analysts Rupesh Parikh and Erica Eiler said in a note to clients. The outlook doesn't bake in tariff impacts, they said.

Shares of Dollar General ( DG ) were down 5.1% in midday trade.

The company is scheduled to release its fiscal fourth-quarter results Thursday. Oppenheimer now projects EPS at $1.43, up from its prior view of $1.25. The Street is looking for $1.50, according to the note.

Dollar General's ( DG ) stock has dropped following seven of its last eight reports, according to the brokerage. Investor sentiment is seen as negative towards the company and the broader dollar store space, Oppenheimer added.

"From here, we are closely watching company efforts to drive a turnaround, which we believe thus far have been masked by both macro and competitive headwinds," the analysts said. "We await new efforts to stabilize margins and drive a comp re-acceleration."

Last week, Deutsche Bank downgraded Dollar General's ( DG ) stock to hold from buy, saying the company is navigating mounting competitive and pricing pressures, with limited opportunity for top-line improvement.

Price: 78.12, Change: -4.68, Percent Change: -5.65