Dollar General Corp (NYSE:DG) stock rose 5.2% (As on March 13, 11:51:46 AM UTC-4, Source: Google Finance) after the company forecast sales to grow this year in a range with the top end higher than what Wall Street expected, giving investors optimism that the discount chain’s recent woes are easing. The Goodlettsville, Tennessee-based retailer said comparable sales will gain as much as 2.2% this year. Analysts projected growth of about 1.8% on average. The retailer sees earnings per share this year in a range of $5.10 to $5.80, with the top end narrowly trailing the average Wall Street estimate.

Further, Same-store sales increased 1.2% compared to the fourth quarter of 2023, reflecting an increase of 2.3% in average transaction amount and a decrease of 1.1% in customer traffic. Same-store sales in the fourth quarter of fiscal 2024 included growth in the consumables category, partially offset by declines in each of the seasonal, home products, and apparel categories. Gross profit as a percentage of net sales was 29.4% in the fourth quarter of fiscal 2024 compared to 29.5% in the fourth quarter of fiscal 2023, a decrease of 8 basis points. This gross profit rate decrease was driven primarily by increases in markdowns, inventory damages, and distribution costs, and a greater proportion of sales coming from the consumables category; partially offset by lower shrink and higher inventory markups. Operating profit for the fourth quarter of fiscal 2024 decreased 49.2% to $294.2 million compared to $579.7 million in the fourth quarter of fiscal 2023. The Company reported net income of $191.2 million for the fourth quarter of fiscal 2024, a decrease of 52.4% compared to $401.8 million in the fourth quarter of fiscal 2023.

Meanwhile, the Company plans to close 96 Dollar General stores and 45 pOpshelf stores, and convert an additional six pOpshelf stores to Dollar General stores in the first quarter of the 52-week fiscal year ending January 30, 2026. During the fourth quarter of fiscal 2024, the Company has initiated a store portfolio optimization review of its Dollar General and pOpshelf bannered stores.

DG in the fourth quarter of FY24 has reported the adjusted earnings per share of $1.68, beating the analysts’ estimates for the adjusted earnings per share of $1.50. The company had reported the adjusted revenue growth of 4.5 percent to $10.3 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $10.26 billion. The net sales increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.