I Am Still Not Bullish On Dollar General After Q1 Results

Summary

Dollar General Corporation Q1 earnings results showed a decline in diluted EPS and operating margin due to increasing SG&A expenses.
Gloomy economic outlook and shift in sales mix towards consumables may affect the company’s profitability in the near term.
Despite a more reasonable valuation after a 20% dive, I maintain a neutral rating on Dollar General stock due to potential margin compression and uncertain macroeconomic conditions.

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